Core Insights - Federated Hermes, Inc. (FHI) reported second-quarter 2025 adjusted earnings per share of $1.16, exceeding the Zacks Consensus Estimate of $1.02, marking a 20.8% increase from the previous year [1][9] - The company's total managed assets reached a record $845.7 billion, reflecting an 8% year-over-year growth [6][9] - Increased net administrative service fees and net investment advisory fees were significant contributors to revenue growth, alongside a decline in operating expenses [1][3][4] Financial Performance - Net income on a GAAP basis rose to $91 million from $21 million in the year-ago quarter [2] - Total revenues increased by 6% year over year to $424.8 million, slightly surpassing the Zacks Consensus Estimate [3][9] - Quarterly net investment advisory fees grew by 6% year over year to $287.4 million, exceeding estimates [3] - Total operating expenses decreased by 15% year over year to $307.8 million, better than the expected $300 million [4][9] Asset Management - As of June 30, 2025, cash and other investments totaled $607.5 million, while total long-term debt was $348.3 million, showing improvement from the previous quarter [5] - Money-market assets increased by 8% year over year to $634.4 billion, while fixed-income assets rose by 4% to $98.7 billion [6] - Equity assets grew by 14% to $89 billion, and alternative/private market assets increased by 3% to $20.7 billion [7] Capital Distribution - The company repurchased 1,547,182 shares of its class B common stock for $64.5 million during the quarter [8] - The board of directors authorized an 18th share repurchase program, allowing for the buyback of up to an additional 5 million shares with no expiration date [10] Market Position - Federated Hermes demonstrates substantial growth potential supported by a diverse asset and product mix and a solid liquidity position [11]

Core Viewpoint - Analysts project that Federated Hermes (FHI) will report quarterly earnings of $0.91 per share, reflecting a 2.3% year-over-year increase, with revenues expected to reach $421.56 million, a 6.4% increase from the same quarter last year [1] Earnings Projections - Over the past 30 days, the consensus EPS estimate has been adjusted downward by 7.5%, indicating a reassessment by covering analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - Analysts estimate 'Revenue- Administrative service fees, net-affiliates' at $99.96 million, a year-over-year increase of 5.5% [5] - 'Revenue- Other service fees, net' is projected at $36.97 million, indicating a decrease of 0.9% from the prior-year quarter [5] - 'Revenue- Investment advisory fees, net' is expected to be $283.63 million, reflecting a 7.3% increase from the year-ago quarter [6] Asset Class Projections - 'Managed Assets - Long-term assets - Alternative/private markets' is estimated to be $20.00 billion, down from $20.47 billion reported in the same quarter last year [6] - 'Managed Assets - Long-term assets - Multi-asset' is projected at $2.91 billion, slightly down from $2.93 billion year-over-year [7] - 'Managed Assets - Money market' is expected to reach $634.16 billion, up from $578.81 billion a year ago [7] Fund Assets Estimates - 'Fund Assets - Funds - Long-term assets - Alternative/private markets' is projected at $12.20 billion, down from $12.46 billion year-over-year [8] - 'Fund Assets - Funds - long-term assets - Multi-asset' is expected to be $2.78 billion, slightly down from $2.79 billion [8] Separate Accounts Projections - 'Separate Accounts - Long-term assets - Alternative/private markets' is estimated at $7.80 billion, down from $8.01 billion year-over-year [9] - 'Separate Accounts - Long-term assets - Multi-asset' is projected at $127.93 million, down from $139 million in the same quarter last year [10] - 'Separate Accounts - Money market' is expected to reach $171.34 billion, up from $161.71 billion year-over-year [10] Stock Performance - Shares of Federated Hermes have decreased by 9.7% over the past month, compared to a 6.6% decline in the Zacks S&P 500 composite [11]