Federated Hermes Q4 revenue beats expectations

Overview

• Investment manager's Q4 revenue beat analyst expectations, driven by higher money market assets

• Q4 EPS rose to $1.39 from $1.04 last year

• Company repurchased 1.57 mln shares for $78.7 mln in Q4

Outlook

• Company did not provide specific future guidance in the press release

Result Drivers

• MONEY MARKET GROWTH - Record money market assets reached $682.6 bln, driven by liquidity products offering attractive cash management resources

• INVESTMENT SOLUTIONS DEMAND - Increased investor interest in ETFs, CITs, and SMAs provided additional opportunities for financial professionals

• SMA STRATEGY SALES - Net sales in SMAs led by MDT All Cap Core, MDT Mid Cap Growth equity, and Core Plus fixed-income strategies

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Federated Hermes Inc is $54.00, about 2.1% above its January 28 closing price of $52.91

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn4B4LHfa

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