Investment management firm Federated Hermes (NYSE: FHI) will be announcing earnings results this Thursday after market close. Here’s what to expect.
Federated Hermes beat analysts’ revenue expectations last quarter, reporting revenues of $482.8 million, up 13.7% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS and revenue 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, the market is expecting Federated Hermes’s revenue to grow 11.8% year on year, improving from the 6.9% increase it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Federated Hermes’s peers in the custody bank segment, some have already reported their Q1 results, giving us a hint as to what we can expect. BNY delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 4.3%, and Northern Trust reported revenues up 13.8%, topping estimates by 4%. BNY traded up 2.4% following the results while Northern Trust was also up 5.6%.
Read our full analysis of BNY’s results here and Northern Trust’s results here.
There has been positive sentiment among investors in the custody bank segment, with share prices up 12.8% on average over the last month. Federated Hermes is up 1.2% during the same time and is heading into earnings with an average analyst price target of $57 (compared to the current share price of $56.87).
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