WisdomTree Q1 revenue and adjusted EPS beat on strong net inflows

Overview

• Asset manager's Q1 operating revenue rose, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations

• Company posted net loss due to $62.3 mln loss on extinguishment of convertible notes

Outlook

• Company did not provide specific guidance for future quarters or the full year

Result Drivers

• NET INFLOWS & MARKET APPRECIATION - Co said record AUM and revenue growth were driven by $5.9 bln of net inflows and market appreciation, especially in international developed equity, fixed income, and leveraged/inverse products

• HIGHER ADVISORY FEES & EUROPEAN ETP REVENUE - Revenue growth was also supported by a higher average advisory fee and increased other revenues from European listed ETPs

• OPERATING EXPENSES - Operating expenses rose from the prior quarter due to higher seasonal compensation, acquisition-related costs, and increased third-party distribution fees

Company press release: ID:nBw4wytHJa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 2 "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 WisdomTree Inc is $20.00, about 17.6% above its April 30 closing price of $17.00

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

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