Federated Earnings Up on Waiver Drop
A press release entitled, “Federated Investors, Inc. Reports Second Quarter 2016 Earnings says, “Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, today reported earnings per diluted share (EPS) of $0.51 for Q2 2016, compared to $0.40 for the same quarter last year on net income of $52.7 million for Q2 2016, compared to $41.8 million for Q2 2015. Federated reported YTD 2016 EPS of $0.94, compared to $0.74 for the same period in 2015 on YTD 2016 net income of $98.2 million compared to $78.1 million for the same period last year. Results for Q2 2016 and YTD 2016 included a pre-tax impact of $3.5 million, or $0.02 EPS, from insurance proceeds.” It explains, “Federated's total managed assets were $367.2 billion at June 30, 2016. Total managed assets were up $17.5 billion or 5 percent from $349.7 billion at June 30, 2015 and down $2.5 billion or 1 percent from $369.7 billion at March 31, 2016. Growth in equity assets was offset by lower money market and fixed-income assets in Q2 2016 compared to Q1 2016…. Money market assets were $255.0 billion at June 30, 2016, up $13.0 billion or 5 percent from $242.0 billion at June 30, 2015 and down $7.0 billion or 3 percent from $262.0 billion at March 31, 2016. Money market mutual fund assets were $218.1 billion at June 30, 2016, up $9.3 billion or 4 percent from $208.8 billion at June 30, 2015 and down $6.6 billion or 3 percent from $224.7 billion at March 31, 2016…. Revenue increased by $58.6 million or 26 percent primarily due to a decrease in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (voluntary yield-related fee waivers).... During Q2 2016, Federated derived 53 percent of its revenue from equity and fixed-income assets (37 percent from equity assets and 16 percent from fixed-income assets) and 47 percent from money market assets. Operating expenses increased by $40.2 million or 25 percent primarily due to an increase in distribution expenses as a result of a decrease in voluntary yield-related fee waivers…. Federated will host an earnings conference call at 9 a.m. Eastern on July 29, 2016. Investors are invited to listen to Federated's earnings teleconference by calling 877-407-0782 (domestic) or 201-689-8567 (international) prior to the 9 a.m. start time. The call may also be accessed in real time on the Internet via the About Federated section of FederatedInvestors.com.” (Watch for our coverage of this in Monday’s “News”.)
