Federated Investors, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017
January 25, 2018 at 04:22 pm EST
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Federated Investors, Inc. reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, total revenue was $278,312,000 against $289,904,000 a year ago. The decrease in revenue was partially offset by 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) and an increase in revenue from higher average equity and fixed-income assets. Operating income was $90,834,000 against $84,822,000 a year ago. Income before income taxes was $93,187,000 against $85,521,000 a year ago. Net Income was $131,810,000 against $55,842,000 a year ago. Earnings per basic and diluted share attributable to Federated Investors, Inc. were $1.31 against $0.52 a year ago. Fourth quarter 2017 adjusted EPS was $0.61, up 17% from EPS of $0.52 for fourth quarter 2016, and adjusted net income was $61.4 million, compared to net income of $55.8 million for fourth quarter 2016.
For the year, total revenue was $1,102,924,000 against $1,143,371,000 a year ago. The decrease in revenue was partially offset by a decrease in voluntary yield-related fee waivers and an increase in revenue from higher average equity and fixed-income assets. Operating income was $341,508,000 against $335,683,000 a year ago. Income before income taxes was $352,002,000 against $340,934,000 a year ago. Net Income was $291,341,000 against $208,919,000 a year ago. Earnings per basic and diluted share attributable to Federated Investors, Inc. were $2.87 against $2.03 a year ago. Full-year 2017 adjusted EPS was $2.18, up 7% from EPS of $2.03 for 2016, and adjusted net income was $220.9 million, compared to net income of $208.9 million for 2016.
Federated Hermes, Inc. is an investment management company. The Company operates through a single segment, being the investment management business. It sponsors, markets and provides investment-related services to various investment products, including sponsored investment companies and other funds (Federated Hermes Funds); and Separate Accounts, which include separately managed accounts (SMAs), institutional accounts, sub-advised funds and other managed products in both domestic and international markets. In addition, it markets and provides stewardship and real estate development services to various domestic and international companies. The Company provides investment advisory services to approximately 180 Federated Hermes Funds. It markets these funds to institutional customers and banks, broker/dealers and other financial intermediaries who use them to meet the needs of customers and/or clients, including, among others, retail investors, corporations and retirement plans.