Federated Hermes, Inc.’s (FHI) first-quarter 2024 earnings per share of 89 cents met the Zacks Consensus Estimate. The bottom line increased from 78 cents in the year-ago quarter.An increase in net investment advisory fees and net administrative service fees are the major driving factors. However, higher expense levels were headwinds.Net income was $75 million, up 8% from the year-ago quarter.Revenues Improve, Operating Expenses RiseTotal revenues improved 4% year over year to $396.4 million. The top line s ...

Federated Hermes (FHI) reported $396.37 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 3.7%. EPS of $0.89 for the same period compares to $0.78 a year ago.The reported revenue represents a surprise of +22.00% over the Zacks Consensus Estimate of $324.89 million. With the consensus EPS estimate being $0.89, the company has not delivered EPS surprise.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Federated Hermes (FHI) came out with quarterly earnings of $0.89 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.78 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this one of the nation's largest managers of money market funds would post earnings of $0.84 per share when it actually produced earnings of $0.96, delivering a surprise of 14.29%.Over the last four quarters, the company has surpassed consensus EPS ...

[Q1 2024 Earnings Release](index=1&type=section&id=Q1%202024%20Earnings%20Release) [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) Federated Hermes reported strong Q1 2024 results with record managed assets and increased diluted EPS, alongside significant capital returns to shareholders | Metric | Q1 2024 | Q1 2023 | % Change | | :--- | :--- | :--- | :--- | | **Earnings Per Diluted Share (EPS)** | $0.89 | $0.78 | +14% | | **Net Income** | $75.0 million | $69.6 million | +8% | - Total managed assets reached a record **$778.7 billion** at March 31, 2024, marking the sixth consecutive quarter of record assets under management[3](index=3&type=chunk)[4](index=4&type=chunk) - The Board of Directors declared a total dividend of **$1.31** per share, consisting of a **$0.31** quarterly dividend (a **10.7%** increase) and a **$1.00** special dividend[2](index=2&type=chunk)[4](index=4&type=chunk) - During Q1 2024, the company purchased **1,082,120** shares of its class B common stock for **$37.0 million**[4](index=4&type=chunk) - The CEO highlighted that growth was driven by attractive yields in liquidity products and investor demand for fixed-income products to add duration, particularly the Federated Hermes Total Return Bond Fund and ETF[4](index=4&type=chunk) [Assets Under Management (AUM) Analysis](index=1&type=section&id=Assets%20Under%20Management%20(AUM)%20Analysis) Total AUM grew **11%** YoY to a record **$778.7 billion**, driven by money market and fixed-income growth, despite declines in equity and alternative assets | AUM Category | March 31, 2024 | March 31, 2023 | % Change | | :--- | :--- | :--- | :--- | | **Total Managed Assets** | $778.7 billion | $701.0 billion | +11% | | Money Market | $578.8 billion | $505.8 billion | +14% | | Fixed-Income | $96.3 billion | $87.5 billion | +10% | | Equity | $80.2 billion | $83.6 billion | -4% | | Alternative/Private Markets | $20.5 billion | $21.2 billion | -3% | [AUM by Asset Class](index=1&type=section&id=AUM%20by%20Asset%20Class) Money market assets were the primary growth driver, reaching a record **$578.8 billion**, while fixed-income grew, and equity and alternative assets declined - **Money Market:** Assets reached a record **$578.8 billion**, up **14%** YoY, with money market fund assets also hitting a record **$417.1 billion**[10](index=10&type=chunk) - **Fixed-Income:** Assets grew **10%** YoY to **$96.3 billion**, with top-selling products including the Federated Hermes Total Return Bond Fund and ETF, and ultrashort bond funds[8](index=8&type=chunk) - **Equity:** Assets decreased **4%** YoY to **$80.2 billion**, despite positive net sales primarily from the Federated Hermes MDT strategy lineup, including Mid Cap Growth and Large Cap Growth funds[6](index=6&type=chunk) - **Alternative/Private Markets:** Assets declined **3%** YoY to **$20.5 billion**[9](index=9&type=chunk) [Long-Term Asset Flows](index=7&type=section&id=Long-Term%20Asset%20Flows) Total long-term assets experienced **$2.3 billion** in net redemptions in Q1 2024, primarily due to equity outflows, partially offset by fixed-income inflows | Asset Class (Q1 2024) | Net Sales (Redemptions) | | :--- | :--- | | Equity | ($3,436 million) | | Fixed Income | $1,188 million | | Alternative/Private Markets | $21 million | | Multi-asset | ($68 million) | | **Total Long-term Assets** | **($2,295 million)** | - By product type, Funds saw net redemptions of **$1.1 billion**, while Separate Accounts experienced net redemptions of **$1.2 billion** in long-term assets[27](index=27&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) Federated Hermes' Q1 2024 revenue increased **4%** to **$396.4 million**, with operating income up **16%** to **$98.6 million** and net income rising **8%** to **$75.0 million** - Revenue increased **4%** YoY, mainly from higher average money market assets, which was partially offset by lower average equity assets, with money market assets contributing **51%** of total revenue[11](index=11&type=chunk) - Compared to Q4 2023, revenue increased **1%** due to higher average assets, but this was partially offset by a **$9.3 million** decrease in carried interest and performance fees[13](index=13&type=chunk) - Operating expenses were nearly flat YoY but increased **3%** QoQ due to higher incentive compensation and payroll taxes[12](index=12&type=chunk)[14](index=14&type=chunk) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Q1 2024 income statement shows total revenue of **$396.4 million**, operating income of **$98.6 million**, and diluted EPS of **$0.89** | (in thousands, except per share) | Q1 2024 | Q1 2023 | Q4 2023 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $396,371 | $382,189 | $391,497 | | **Total Operating Expenses** | $297,790 | $297,023 | $288,927 | | **Operating Income** | $98,581 | $85,166 | $102,570 | | **Net Income** | $75,033 | $69,601 | $82,178 | | **Diluted EPS** | $0.89 | $0.78 | $0.96 | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were **$2.09 billion**, with cash and investments at **$558.5 million** and long-term debt at **$347.9 million** | (in thousands) | March 31, 2024 | Dec. 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | $2,086,972 | $2,101,844 | | Cash and other investments | $558,532 | $560,675 | | Total Liabilities | $866,415 | $947,747 | | **Total Equity** | $1,147,427 | $1,128,252 | [Corporate Updates & Shareholder Information](index=1&type=section&id=Corporate%20Updates%20%26%20Shareholder%20Information) The company announced the election of a new independent director, expanding the board, and provided details for the Q1 2024 earnings conference call - At the annual shareholder meeting on April 25, 2024, Karen L. Hanlon was elected as a new independent director, expanding the board to seven members[5](index=5&type=chunk) - An earnings conference call was scheduled for 9 a.m. Eastern on Friday, April 26, 2024, with details provided for participation via phone or online[16](index=16&type=chunk)

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it ...

One stock that might be an intriguing choice for investors right now is Federated Hermes (FHI) . This is because this security in the Financial - Investment Management space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place ...

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Federated Hermes (FHI) , which belongs to the Zacks Financial - Investment Management industry, could be a great candidate to consider.This one of the nation's largest managers of money market funds has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for th ...

Investors with an interest in Financial - Investment Management stocks have likely encountered both Federated Hermes (FHI) and SEI Investments (SEIC) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Styl ...

Annual Shareholder Meeting will be by teleconference Thursday, April 25, 2024PITTSBURGH, April 4, 2024 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, will report financial and operating results for the quarter ended March 31, 2024 after the market closes on Thursday, April 25, 2024. A conference call for investors and analysts will be held at 9 a.m. Eastern on Friday, April 26, 2024. President and Chief Executive Officer J. Christopher Donahue and Chief ...

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