We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for WisdomTree (WETF) in Q1 Earnings?
Read MoreHide Full Article
WisdomTree Investments, Inc. is scheduled to report first-quarter 2017 results on Apr 28, before the market opens.
Last quarter, this New York-based exchange traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor reported adjusted earnings per share of 3 cents, which lagged the Zacks Consensus Estimate of 6 cents. The company witnessed a decline in revenues due to lower assets under management (AUM) and higher expenses.
However, the company has a decent earnings surprise history as depicted in the chart below:
WisdomTree Investments, Inc. Price and EPS Surprise
According to our quantitative model, we cannot conclusively predict an earnings beat for WisdomTree in the upcoming results. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #3 (Hold) or better for this to happen, which is not the case here as elaborated below.
(You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.)
Zacks ESP: The Earnings ESP for WisdomTree is 0.00%. This is because the Most Accurate estimate matches the Zacks Consensus Estimate of 4 cents.
Zacks Rank: WisdomTree’s Zacks Rank #3 increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings beat.
Factors at Play
The last year was quite tough for WisdomTree as it was hit with significant outflows. The outflows were mostly driven by internationally hedged products, particularly the company’s major currency-hedged funds – HEDJ and DXJ – which constitute a major part of the company’s AUM.
In the first quarter, there were no measurable progress that can help the company to reduce outflows.
WisdomTree remains focused on executing strategic growth initiatives, including expansion of distribution capabilities, investment in technology, launch of innovative products and addition of personnel. We expect such initiatives to increase marketing and sales expenses in the first quarter.
A key area to watch is compensation expense level during the quarter. Management expects a compensation expense to be 28–31% of revenues for the year.
WisdomTree’s activities during the to-be-reported quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the quarter remained stable over the last seven days.
Ares Management L.P. (ARES - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank #3. It is slated to report first-quarter results on May 8.
The Earnings ESP for Manning & Napier, Inc. is +14.29% and it carries a Zacks Rank #3. The company is scheduled to release first-quarter results on May 3.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
Image: Bigstock
What's in the Cards for WisdomTree (WETF) in Q1 Earnings?
WisdomTree Investments, Inc. is scheduled to report first-quarter 2017 results on Apr 28, before the market opens.
Last quarter, this New York-based exchange traded fund (“ETF”) and exchange-traded product (“ETP”) sponsor reported adjusted earnings per share of 3 cents, which lagged the Zacks Consensus Estimate of 6 cents. The company witnessed a decline in revenues due to lower assets under management (AUM) and higher expenses.
However, the company has a decent earnings surprise history as depicted in the chart below:
WisdomTree Investments, Inc. Price and EPS Surprise
WisdomTree Investments, Inc. Price and EPS Surprise | WisdomTree Investments, Inc. Quote
Earnings Whispers
According to our quantitative model, we cannot conclusively predict an earnings beat for WisdomTree in the upcoming results. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #3 (Hold) or better for this to happen, which is not the case here as elaborated below.
(You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.)
Zacks ESP: The Earnings ESP for WisdomTree is 0.00%. This is because the Most Accurate estimate matches the Zacks Consensus Estimate of 4 cents.
Zacks Rank: WisdomTree’s Zacks Rank #3 increases the predictive power of ESP. However, we also need to have a positive ESP to be confident of an earnings beat.
Factors at Play
The last year was quite tough for WisdomTree as it was hit with significant outflows. The outflows were mostly driven by internationally hedged products, particularly the company’s major currency-hedged funds – HEDJ and DXJ – which constitute a major part of the company’s AUM.
In the first quarter, there were no measurable progress that can help the company to reduce outflows.
WisdomTree remains focused on executing strategic growth initiatives, including expansion of distribution capabilities, investment in technology, launch of innovative products and addition of personnel. We expect such initiatives to increase marketing and sales expenses in the first quarter.
A key area to watch is compensation expense level during the quarter. Management expects a compensation expense to be 28–31% of revenues for the year.
WisdomTree’s activities during the to-be-reported quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the quarter remained stable over the last seven days.
Stocks that Warrant a Look
The Earnings ESP for Moody’s Corporation (MCO - Free Report) is +4.17% and it carries a Zacks Rank #2 (Buy). The company is scheduled to release first-quarter results on May 5. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Ares Management L.P. (ARES - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank #3. It is slated to report first-quarter results on May 8.
The Earnings ESP for Manning & Napier, Inc. is +14.29% and it carries a Zacks Rank #3. The company is scheduled to release first-quarter results on May 3.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
Click here for a peek at this private information >>