Notable Earnings: Federated Investors, Inc. (NYSE:FII)


Federated Investors, Inc. (NYSE:FII) reported earnings for the three months ended March 2016 on April 28, 2016. The company earned $0.44 per share on revenue of $272.11M. Analysts had been modeling earning per share of $0.44 with $258.29M in revenue.

Federated Investors, Inc. (FII) on April 28, 2016 reported earnings per diluted share (EPS) of $0.44 for Q1 2016, up 26 percent from $0.35 for the same quarter last year on net income of $45.3 million for Q1 2016, compared to $36.3 million for Q1 2015.

Federated’s total managed assets were $369.7 billion at March 31, 2016. Total managed assets were up $13.9 billion or 4 percent from $355.8 billion at March 31, 2015 and up $8.6 billion or 2 percent from $361.1 billion at Dec. 31, 2015. All asset classes increased in Q1 2016 compared to Q4 2015. Average managed assets for Q1 2016 were $363.9 billion, up $4.4 billion or 1 percent from $359.5 billion reported for Q1 2015 and up $9.9 billion or 3 percent from $354.0 billion reported for Q4 2015.

“Investor demand for high-quality income-oriented equity products throughout the first quarter fueled strong flows into our Strategic Value Dividend strategies,” said J. Christopher Donahue, president and chief executive officer. “We also saw continued interest in high-yield fixed-income products such as Federated High Yield Trust and in alternative strategies such as Federated Prudent Bear Fund.”

Federated’s board of directors declared a dividend of $0.25 per share. The dividend is payable on May 13, 2016 to shareholders of record as of May 6, 2016. During Q1 2016, Federated purchased 522,700 shares of Federated class B common stock for $13.7 million. The board also announced the election of directors Thomas R. Donahue, who serves as Federated’s chief financial officer and treasurer, and John B. Fisher, who leads Federated’s investment management operation as president and chief executive officer of the Federated Advisory Companies. J. Christopher Donahue and John W. McGonigle also were reelected as management members of the board. John F. Donahue, co-founder and chairman since 1955, will now serve Federated as chairman emeritus and will continue to remain available to the board and senior management. J. Christopher Donahue assumed the role of chairman. Federated’s seven current directors also include outside board members Michael J. Farrell, David M. Kelly and Marie Milie Jones, who bring continuity, expertise and perspective to the board.

Federated’s equity assets were a record $56.5 billion at March 31, 2016, up $2.5 billion or 5 percent from $54.0 billion at March 31, 2015 and up $2.9 billion or 5 percent from $53.6 billion at Dec. 31, 2015. Top-selling equity funds during Q1 2016 on a net basis were Federated Strategic Value Dividend Fund, Federated Prudent Bear Fund, Federated International Leaders Fund, Federated International Strategic Value Dividend Fund and Federated Muni and Stock Advantage Fund.

Federated Investors, Inc. earnings per share showed an increasing trend of 14.1% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 205%.Analysts project EPS growth over the next 5 years at 12.81%. It has EPS annual decline over the past 5 fiscal years of -1.2% when sales declined -0.5. It reported 23.4% sales growth, and 24.4% EPS growth in the last quarter.

The stock is trading at $29.99, up 33.68% from 52-week low of $22.76. The stock trades down -12.16% from its peak of $35.08 and -1.63% below the consensus price target of $29.5. Its volume clocked up at 0.66 million shares which is higher than the average volume of 0.65 million shares. Its market capitalization currently stands at $3.02B.


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