Overview

• U.S. asset manager's Q1 revenue slightly beat analyst expectations, AUM hit record $907.1 bln

• Q1 EPS rose to $1.27 from $1.25 a year earlier

• Company raised quarterly dividend by 11.8% and repurchased $66 mln in stock

Outlook

• Federated Hermes did not provide specific financial guidance for the current quarter or full year in its press release

Result Drivers

• MONEY MARKET DEMAND - Co said record money market assets reflected ongoing investor interest in capital preservation and liquidity

• EQUITY INFLOWS - Record equity assets driven by positive net flows and strong sales, especially in MDT quantitative investment solutions

• HIGHER OPERATING EXPENSES - Operating expenses increased due to higher distribution and compensation costs

Company press release: ID:nPn9jbvQJa

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy."

• Wall Street's median 12-month price target for Federated Hermes Inc is $58.00, about 2.9% above its April 29 closing price of $56.36

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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