Federated(US:FHI) ZACKSยท2025-04-25 15:50Core Viewpoint - Federated Hermes, Inc. (FHI) reported strong financial performance in Q1 2025, with adjusted earnings per share of $1.10, exceeding the Zacks Consensus Estimate of 91 cents, and reflecting a 23.6% increase year-over-year [1] Group 1: Financial Performance - Total revenues increased by 7% year-over-year to $423.5 million, surpassing the Zacks Consensus Estimate by 0.9% [2] - Quarterly net investment advisory fees rose by 9% year-over-year to $287.5 million, exceeding the estimate of $282.9 million [2] - Net income on a GAAP basis was $101.1 million, representing a 35% increase from the prior-year quarter [1] Group 2: Operating Expenses - Total operating expenses declined by 2% year-over-year to $291.8 million, significantly lower than the estimate of $324 million [3] - Net other service fees fell by 6% year-over-year to $34.9 million, while net administrative service fees rose by 7% to $101.1 million [3] Group 3: Asset Management - Total managed assets reached a record level of $839.8 billion, up 7.8% year-over-year, exceeding the estimate of $823 billion [5] - Money-market assets increased by 10.1% year-over-year to $637.1 billion, while fixed-income assets rose by 3.3% to $99.5 billion [5] - Average managed assets totaled $843.2 billion, reflecting an 8.6% year-over-year increase, surpassing the estimate of $813.2 billion [6] Group 4: Capital Distribution - The company declared a quarterly cash dividend of 34 cents per share, marking a 9.7% increase from the previous payout, to be paid on May 15, 2025 [7] - FHI repurchased 3,057,542 shares of its class B common stock for $120.1 million during the reported quarter [7] Group 5: Market Position - Federated Hermes demonstrates substantial growth potential, supported by a diverse asset and product mix and a solid liquidity position, despite facing uncertain market conditions [9]