Federated Hermes (FHI) Beats Q2 Earnings and Revenue Estimates

Group 1: Earnings Performance - Federated Hermes reported quarterly earnings of $1.16 per share, exceeding the Zacks Consensus Estimate of $1.02 per share, and up from $0.96 per share a year ago [1] - The earnings surprise for this quarter was +13.73%, following a previous surprise of +20.88% when earnings were $1.1 per share against an expectation of $0.91 [2] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] Group 2: Revenue Performance - Revenues for the quarter ended June 2025 were $424.84 million, slightly above the Zacks Consensus Estimate by 0.10%, and an increase from $402.58 million year-over-year [3] - Federated Hermes has also topped consensus revenue estimates three times over the last four quarters [3] Group 3: Stock Performance and Outlook - The stock has gained approximately 20.9% since the beginning of the year, outperforming the S&P 500's gain of 8.2% [4] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $1.06 for the coming quarter and $4.37 for the current fiscal year [5][8] - The Zacks Rank for Federated Hermes is currently 2 (Buy), indicating expected outperformance in the near future [7] Group 4: Industry Context - The Financial - Investment Management industry, to which Federated Hermes belongs, is currently in the top 20% of over 250 Zacks industries, suggesting a favorable environment for stock performance [9] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6]