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Federated Hermes (FHI) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

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For the quarter ended September 2024, Federated Hermes (FHI - Free Report) reported revenue of $408.46 million, up 1.4% over the same period last year. EPS came in at $1.06, compared to $0.86 in the year-ago quarter.

The reported revenue represents a surprise of -0.49% over the Zacks Consensus Estimate of $410.47 million. With the consensus EPS estimate being $0.92, the EPS surprise was +15.22%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Federated Hermes performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Managed Assets - Asset Class - Alternative / private markets: $20.68 billion compared to the $20.68 billion average estimate based on two analysts.
  • Managed Assets - Asset Class - Multi-asset: $2.96 billion compared to the $2.85 billion average estimate based on two analysts.
  • Managed Assets - Asset Class - Money market: $593.03 billion compared to the $582.90 billion average estimate based on two analysts.
  • Managed Assets - Product Type - Alternative / private markets: $12.56 billion versus the two-analyst average estimate of $12.52 billion.
  • Managed Assets - Product Type - Multi-asset: $2.82 billion versus the two-analyst average estimate of $2.72 billion.
  • Managed Assets - Asset Class - Fixed-income: $100.17 billion versus $97.56 billion estimated by two analysts on average.
  • Managed Assets - Separate Accounts - Alternative / private markets: $8.13 billion compared to the $8.16 billion average estimate based on two analysts.
  • Managed Assets - Separate Accounts - Multi-asset: $135 million compared to the $137.90 million average estimate based on two analysts.
  • Managed Assets - Separate Accounts - Money market: $152.63 billion versus $150.97 billion estimated by two analysts on average.
  • Revenue- Administrative service fees, net: $97.69 million versus $94.90 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11% change.
  • Revenue- Other service fees, net: $36.15 million compared to the $38.06 million average estimate based on two analysts. The reported number represents a change of -4.5% year over year.
  • Revenue- Investment advisory fees, net: $274.62 million versus the two-analyst average estimate of $275.34 million. The reported number represents a year-over-year change of -0.8%.
View all Key Company Metrics for Federated Hermes here>>>

Shares of Federated Hermes have returned +2.9% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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