Federated profits fall short of expectations

Share with others:

Print Email Read Later

Federated Investors today reported lower first-quarter profits that fell short of analyst expectations.

The Downtown investment manager said net income totaled $35.2 million, or 34 cents per share, versus earnings of $43 million, or 41 cents per share, in the year-ago quarter. Revenue fell 7 percent to $211.5 million.

Analysts had forecast earnings of 37 cents and revenue of $218.5 million.

Assets under management totaled $366.2 billion, down 3 percent from year-ago levels. Equity assets reached a record $45.9 billion.

First-quarter results reflected a $29.7 million reduction in pre-tax income because of money market fees Federated waived. Not collecting the fees allows money fund investors to break even or realize small gains despite low short-term interest rates. President and CEO J. Christopher Donahue expects the waivers will have a similar impact in the current quarter.

"This is something we have learned to deal with in a low-interest-rate environment," Mr. Donahue said during a presentation at the company's shareholder meeting at the Westin Convention Center Hotel, Downtown.

The results were disclosed after the market closed. Federated shares finished today at $29.82, up 22 cents. They are up 4 percent this year.

Len Boselovic: 412-263-1941 or lboselovic@post-gazette.com

Join the conversation:

Commenting policy | How to report abuse
To report inappropriate comments, abuse and/or repeat offenders, please send an email to socialmedia@post-gazette.com and include a link to the article and a copy of the comment. Your report will be reviewed in a timely manner. Thank you.
Commenting policy | How to report abuse

Create a free PG account.
Already have an account?

You have 2 remaining free articles this month

Try unlimited digital access

If you are an existing subscriber,
link your account for free access. Start here

You’ve reached the limit of free articles this month.

To continue unlimited reading

If you are an existing subscriber,
link your account for free access. Start here