The 10-second takeaway
For the quarter ended June 30 (Q2), Federated Investors missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share dropped.
Gross margins expanded, operating margins contracted, net margins dropped.
Federated Investors logged revenue of $232.1 million. The eight analysts polled by S&P Capital IQ anticipated sales of $241.2 million on the same basis. GAAP reported sales were 2.8% higher than the prior-year quarter's $225.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.39. The nine earnings estimates compiled by S&P Capital IQ forecast $0.41 per share. GAAP EPS of $0.39 for Q2 were 4.9% lower than the prior-year quarter's $0.41 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 71.9%, 40 basis points better than the prior-year quarter. Operating margin was 29.7%, 220 basis points worse than the prior-year quarter. Net margin was 17.4%, 140 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $245.9 million. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $960.9 million. The average EPS estimate is $1.67.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 296 members out of 316 rating the stock outperform, and 20 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Federated Investors a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Federated Investors is underperform, with an average price target of $20.41.
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