Investment management firm Federated Hermes (NYSE: FHI) will be reporting earnings this Thursday after the bell. Here’s what to look for.
Federated Hermes met analysts’ revenue expectations last quarter, reporting revenues of $424.8 million, up 5.5% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates.
Is Federated Hermes a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Federated Hermes’s revenue to grow 9% year on year to $445.1 million, improving from the 1.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.12 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Federated Hermes has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Federated Hermes’s peers in the custody bank segment, some have already reported their Q3 results, giving us a hint as to what we can expect. BNY delivered year-on-year revenue growth of 9.1%, beating analysts’ expectations by 2.1%, and State Street reported revenues up 8.8%, topping estimates by 2.3%. BNY traded down 2.8% following the results while State Street was up 2%.
Read our full analysis of BNY’s results here and State Street’s results here.
Investors in the custody bank segment have had steady hands going into earnings, with share prices flat over the last month. Federated Hermes is down 6.8% during the same time and is heading into earnings with an average analyst price target of $51.86 (compared to the current share price of $48.41).
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