Federated Investors (NYSE: FII) reported earnings on July 25. Here are the numbers you need to know.

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 shrank. GAAP earnings per share stayed the same.

Gross margins contracted, operating margins dropped, net margins expanded.

Revenue details
Federated Investors notched revenue of $223.8 million. The six analysts polled by S&P Capital IQ wanted to see a top line of $232.5 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 details
EPS came in at $0.39. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share. GAAP EPS of $0.39 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.

Margin details
For the quarter, gross margin was 69.7%, 220 basis points worse than the prior-year quarter. Operating margin was 29.5%, 20 basis points worse than the prior-year quarter. Net margin was 18.1%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $241.8 million. On the bottom line, the average EPS estimate is $0.43.

Next year's average estimate for revenue is $977.3 million. The average EPS estimate is $1.69.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 288 members out of 307 rating the stock outperform, and 19 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 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 $23.77.

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