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Federated Hermes (FHI) Q4 Earnings and Revenues Surpass Estimates
FHIFederated(FHI) ZACKS·2025-01-31 00:10

Earnings Performance - Federated Hermes reported quarterly earnings of 104pershare,beatingtheZacksConsensusEstimateof1 04 per share, beating the Zacks Consensus Estimate of 0 96 per share, representing an 8 33% earnings surprise [1][2] - The company's earnings per share (EPS) increased from 096ayearago,withfiguresadjustedfornon−recurringitems[1]−Overthelastfourquarters,thecompanyhassurpassedconsensusEPSestimatesthreetimes[2]RevenuePerformance−FederatedHermespostedrevenuesof0 96 a year ago, with figures adjusted for non-recurring items [1] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Revenue Performance - Federated Hermes posted revenues of 424 68 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1 19% [3] - This represents an increase from year-ago revenues of 3915million[3]−Thecompanyhastoppedconsensusrevenueestimatesthreetimesoverthelastfourquarters[3]StockPerformanceandMarketComparison−FederatedHermesshareshavelostabout4391 5 million [3] - The company has topped consensus revenue estimates three times over the last four quarters [3] Stock Performance and Market Comparison - Federated Hermes shares have lost about 4% since the beginning of the year, compared to the S&P 500's gain of 2 7% [4] - The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call [4] Earnings Outlook and Estimate Revisions - The current consensus EPS estimate is 0 96 on 42142millioninrevenuesforthecomingquarterand421 42 million in revenues for the coming quarter and 4 13 on 174billioninrevenuesforthecurrentfiscalyear[8]−Empiricalresearchshowsastrongcorrelationbetweennear−termstockmovementsandtrendsinearningsestimaterevisions[6]−TheestimaterevisionstrendforFederatedHermesismixed,translatingintoaZacksRank3(Hold)[7]IndustryContext−FederatedHermesbelongstotheZacksFinancial−InvestmentManagementindustry,whichiscurrentlyinthebottom181 74 billion in revenues for the current fiscal year [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [6] - The estimate revisions trend for Federated Hermes is mixed, translating into a Zacks Rank 3 (Hold) [7] Industry Context - Federated Hermes belongs to the Zacks Financial - Investment Management industry, which is currently in the bottom 18% of the 250 plus Zacks industries [9] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9] Peer Comparison - Janus Henderson Group plc (JHG), another company in the same industry, is expected to report quarterly earnings of 0 96 per share, representing a year-over-year change of +17 1% [10] - Janus Henderson Group plc's revenues are expected to be $690 87 million, up 21 5% from the year-ago quarter [11] - The consensus EPS estimate for Janus Henderson Group plc has been revised 3 4% lower over the last 30 days [10]