Fiera Capital Q2 revenue misses expectations, falls 1.1% y/y

Overview

• Fiera Capital Q2 revenue misses analyst expectations, down 1.1% yr/yr

• Adjusted EBITDA rises 5.3% from Q1, driven by lower SG&A expenses

• Company repurchased 1.1 mln shares, reinforcing capital return commitment

Outlook

• Company focuses on strategic priorities for long-term organic growth

• Fiera Capital highlights momentum in Public Markets with C$1.4 bln new mandates

Result Drivers

• PRIVATE MARKETS GROWTH - Assets under management in Private Markets grew year-over-year to nearly C$21 bln, contributing to stable average AUM

• PUBLIC MARKETS CHALLENGES - Revenue decline attributed to lower base management fees in Public Markets, despite strong new mandates

• STRATEGIC PRIORITIES - Focus on delivering consistent investment performance and improving operating efficiency, per CEO Maxime Ménard

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "hold"

• Wall Street's median 12-month price target for Fiera Capital Corp is C$7.00, about 5.4% above its August 7 closing price of C$6.62

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 6 three months ago

Press Release: ID:nCNW2H96Sa