Federated Hermes Q4 Earnings Beat Estimates, Revenues Increases Y/Y

Core Viewpoint - Federated Hermes, Inc. reported strong fourth-quarter 2024 earnings, with adjusted earnings per share of $1.04, exceeding the Zacks Consensus Estimate of 96 cents, marking an 8% increase from the previous year [1][2] Financial Performance - The company's net income on a GAAP basis was $84.7 million, reflecting a 3% increase year over year [2] - Total revenues for the quarter rose 8% year over year to $424.7 million, surpassing the Zacks Consensus Estimate by 1.2% [4] - For the full year 2024, operating revenue was $1.63 billion, meeting the Zacks Consensus Estimate, with a 1% year-over-year increase [4] - Quarterly net investment advisory fees increased by 9% year over year to $288.3 million, exceeding estimates [4] - Total operating expenses rose 9% year over year to $314.3 million, which was below expectations [5] Asset Management - As of December 31, 2024, total managed assets reached a record level of $829.6 billion, up 9.5% year over year, exceeding estimates [7] - Money-market assets increased by 12.6% year over year to $630.3 billion, while fixed-income assets rose by 3.3% to $98 billion [7] - Equity assets were reported at $79.4 billion, a 1.1% increase from the prior year, while alternative/private market assets fell by 8.2% to $18.9 billion [8] - Average managed assets totaled $805.4 billion, reflecting a 10.5% year-over-year increase [8] Capital Distribution - The company declared a quarterly cash dividend of 31 cents per share, payable on February 14, 2025 [10] - In the reported quarter, Federated Hermes repurchased 552,533 shares of its class B common stock for $22.1 million [10] Market Position - Federated Hermes demonstrates substantial growth potential, supported by a diverse asset and product mix and a solid liquidity position [11]