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 firstname.lastname@example.org