The 10-second takeaway
For the quarter ended March 31 (Q1), Federated Investors missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. GAAP earnings per share was unchanged.
Gross margins dropped, operating margins dropped, net margins grew.
Federated Investors reported revenue of $228.0 million. The eight analysts polled by S&P Capital IQ looked for revenue of $252.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.41. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.42 per share. GAAP EPS of $0.41 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 70.6%, 160 basis points worse than the prior-year quarter. Operating margin was 29.9%, 60 basis points worse than the prior-year quarter. Net margin was 18.9%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $263.0 million. On the bottom line, the average EPS estimate is $0.44.
Next year's average estimate for revenue is $1.05 billion. The average EPS estimate is $1.78.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 286 members out of 306 rating the stock outperform, and 20 members rating it underperform. Among 102 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 97 give Federated Investors a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Federated Investors is hold, with an average price target of $22.86.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Federated Investors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.