Second Quarter 2024 Earnings Presentation August 9, 2024 Forward Looking Statements This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target," "believe," "expect," "aim," "intend," "may," "anticipate," "assume," "budget," "continue," "estimate," "future," "objective," "outlook," "plan," "potential," "predict," ...

Victory Capital Holdings (VCTR) came out with quarterly earnings of $1.31 per share, beating the Zacks Consensus Estimate of $1.29 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.55%. A quarter ago, it was expected that this investment management firm would post earnings of $1.21 per share when it actually produced earnings of $1.25, delivering a surprise of 3.31%. Over the last ...

Wall Street analysts forecast that Victory Capital Holdings (VCTR) will report quarterly earnings of $1.29 per share in its upcoming release, pointing to a year-over-year increase of 16.2%. It is anticipated that revenues will amount to $220.82 million, exhibiting an increase of 8.1% compared to the year-ago quarter. The current level reflects a downward revision of 1.8% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collective ...

Company Performance - Victory Capital Holdings (VCTR) has returned 52.1% year-to-date, outperforming the average return of 13.7% for Finance companies [4] - The Zacks Consensus Estimate for VCTR's full-year earnings has increased by 1.5% in the past quarter, indicating an improving earnings outlook [6] - VCTR belongs to the Financial - Investment Management industry, which has gained about 14% this year, further highlighting its strong performance relative to its peers [7] Industry Insights - Barclays, another Finance stock, has returned 52.5% year-to-date, indicating strong performance within the sector [9] - The Banks - Foreign industry, which includes Barclays, is ranked 49 out of 66 industries and has moved up by 9.2% this year [5] - The Finance sector, which encompasses 862 individual stocks, currently holds a Zacks Sector Rank of 6, reflecting the overall strength of the sector [8]

Core Viewpoint - Victory Capital Holdings (VCTR) is currently viewed as a superior value option compared to SEI Investments (SEIC) based on various valuation metrics [6]. Valuation Metrics - VCTR has a P/B ratio of 3.13, while SEIC has a P/B ratio of 3.96, indicating that VCTR is relatively more undervalued [2]. - The forward P/E ratio for VCTR is 9.90, significantly lower than SEIC's forward P/E of 16.25, suggesting VCTR may offer better value [4]. - VCTR's PEG ratio stands at 0.58, compared to SEIC's PEG ratio of 1.35, further supporting the notion that VCTR is a more attractive investment based on expected earnings growth [4]. Earnings Outlook - Both VCTR and SEIC have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - The improving earnings outlook for both companies is a key factor for investors, but VCTR is highlighted as the better option based on valuation figures [6]. Investment Strategy - The investment strategy includes using a combination of strong Value grades and positive Zacks Ranks to identify undervalued companies [7]. - The Value category of the Style Scores system evaluates companies based on metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share to determine fair value [8]. - VCTR has a Value grade of B, while SEIC has a Value grade of C, indicating a stronger valuation profile for VCTR [9].

Core Insights - Victory Capital has demonstrated a strong performance in surpassing earnings estimates, averaging a 2.54% beat over the last two quarters [1] - The company currently holds an Earnings ESP of +1.22%, indicating a positive outlook from analysts regarding its earnings prospects [3] - Victory Capital's recent earnings report showed earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.21 per share by 3.31% [6] Earnings Performance - In the last reported quarter, Victory Capital's earnings of $1.25 per share surpassed the consensus estimate of $1.21, while the previous quarter's earnings of $1.15 also exceeded expectations of $1.13, resulting in surprises of 3.31% and 1.77% respectively [6] - The company has a solid history of beating earnings estimates, positioning it well for potential continued success in future reports [5] Earnings ESP and Market Position - The Zacks Earnings ESP for Victory Capital is positive, suggesting a strong likelihood of an earnings beat, especially when combined with its Zacks Rank of 2 (Buy) [7] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [2]

Investors looking for stocks in the Financial - Investment Management sector might want to consider either Victory Capital Holdings (VCTR) or BlackRock (BLK) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Ra ...

Core Viewpoint - Victory Capital Holdings, Inc. has entered into a definitive agreement with Amundi to merge Amundi's US business with Victory Capital, enhancing its distribution capabilities and product offerings [1][2][3]. Group 1: Transaction Details - The merger will result in Amundi holding a 26.1% economic stake in Victory Capital, with two representatives from Amundi joining Victory Capital's board of directors [2]. - The transaction is expected to close in late Q4 2024 or early 2025 [2]. - Victory Capital will provide US-manufactured active asset management products to Amundi for global distribution, while distributing Amundi's non-US manufactured products in the US [4][12]. Group 2: Financial Impact - The deal is projected to be earnings-accretive, with low double-digit earnings per share growth anticipated within a year of closing [5]. - Approximately $100 million in annual cost savings are expected to be realized within a year of closing, with additional synergies in the following year [5]. - Victory Capital's net leverage ratio is expected to improve significantly post-transaction due to increased cash inflows and no incremental debt [6]. Group 3: Strategic Alignment - This collaboration aligns with Victory Capital's inorganic growth strategy, which has included several acquisitions since 2013 to diversify its product offerings and strengthen distribution channels [3][6]. - The company has previously made strategic acquisitions, including WestEnd Advisors in 2021 and USAA Asset Management Company in 2019, indicating a commitment to expansion [7]. - The CEO of Victory Capital emphasized that this strategic relationship will accelerate the firm's globalization and broaden its investment offerings [13]. Group 4: Market Performance - Over the past six months, Victory Capital's shares have increased by 40.2%, outperforming the industry growth of 8.3% [7].

Victory Capital Holdings, Inc. (VCTR) reported assets under management (AUM) of $168.5 billion for May 2024. This reflected a 2.9% increase from $163.6 billion as of Apr 30, 2024. By asset class, VCTR's U.S. Mid Cap Equity AUM increased 2.3% from the April level to $31.73 billion. The U.S. Small Cap Equity AUM of $15.65 billion rose 3%. The Global/Non-U.S. Equity AUM improved 4% to $18.52 billion. The U.S. Large Cap Equity AUM rose 3.9% to $13.66 billion. Also, Victory Capital recorded $57.92 billion in Sol ...

Core Insights - Victory Capital Holdings (VCTR) is currently rated 2 (Buy) by Zacks Rank, indicating a more favorable earnings estimate revision compared to SEI Investments (SEIC), which holds a 3 (Hold) rating [3] - Value investors assess a range of traditional metrics to determine if a stock is undervalued, beyond just earnings estimates [3] Valuation Metrics - VCTR has a forward P/E ratio of 9.83, significantly lower than SEIC's forward P/E of 16.40, suggesting VCTR may be undervalued [5] - The PEG ratio for VCTR is 0.55, while SEIC's PEG ratio is 1.37, indicating VCTR's expected earnings growth is more favorable relative to its price [5] - VCTR's P/B ratio stands at 3.12, compared to SEIC's P/B of 3.94, further supporting VCTR's valuation attractiveness [6] Value Grades - Based on the aforementioned metrics, VCTR has received a Value grade of B, while SEIC has a Value grade of C, highlighting VCTR's superior valuation profile [6] - The improving earnings outlook for VCTR enhances its attractiveness as a value investment option [7]