Uncovering Potential: Federated Hermes's Earnings Preview

Federated Hermes FHI is gearing up to announce its quarterly earnings on Thursday, 2025-04-24. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Federated Hermes will report an earnings per share (EPS) of $0.95.

The announcement from Federated Hermes is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings Track Record

During the last quarter, the company reported an EPS beat by $0.07, leading to a 0.05% increase in the share price on the subsequent day.

Here's a look at Federated Hermes's past performance and the resulting price change:

Tracking Federated Hermes's Stock Performance

Shares of Federated Hermes were trading at $37.23 as of April 22. Over the last 52-week period, shares are up 10.45%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Perspectives on Federated Hermes

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Federated Hermes.

With 4 analyst ratings, Federated Hermes has a consensus rating of Neutral. The average one-year price target is $39.5, indicating a potential 6.1% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of Artisan Partners Asset and Victory Capital Holdings, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Artisan Partners Asset, with an average 1-year price target of $39.67, suggesting a potential 6.55% upside.
• Analysts currently favor an Neutral trajectory for Victory Capital Holdings, with an average 1-year price target of $74.4, suggesting a potential 99.84% upside.

Peers Comparative Analysis Summary

Within the peer analysis summary, vital metrics for Artisan Partners Asset and Victory Capital Holdings are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Federated Hermes ranks highest in Gross Profit among its peers. It is in the middle for Revenue Growth and Return on Equity.

Discovering Federated Hermes: A Closer Look

Federated Hermes provides asset-management services for institutional and individual investors. The firm had $800 billion in managed assets at the end of September 2024, composed of equity (10%), multi-asset (less than 1%), fixed-income (12%), alternative (3%), and money market (74%) funds. The firm's cash-management operations are expected to generate around 51% of Federated's revenue this year, compared with 29%, 12%, and 7%, respectively, for the equity, fixed-income, and alternatives/multi-asset operations. The company's products are distributed via trust banks, wealth managers, and retail broker/dealers (65% of AUM), institutional investors (26%), and international clients (9%).

Financial Milestones: Federated Hermes's Journey

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Federated Hermes's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2024, the company achieved a revenue growth rate of approximately 8.48%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 19.09%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.44%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Federated Hermes's ROA excels beyond industry benchmarks, reaching 3.93%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.42, Federated Hermes adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Federated Hermes visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.