Federated Hermes (NYSE:FHI) Releases Earnings Results, Beats Expectations By $0.08 EPS

Key Points

• Federated Hermes beat quarterly expectations: EPS came in at $1.50 versus the $1.42 consensus, while revenue reached $507.33 million, slightly above estimates and up 8.1% year over year.
• Shares rose 2.1% to $57.99 following the results. The company reported a 21.30% net margin and 34.03% return on equity.
• Analyst sentiment remains cautious, with an average “Hold” rating and a $57.80 average price target; five of eight tracked analysts rate the stock Hold.

Federated Hermes (NYSE:FHI - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $1.50 EPS for the quarter, beating analysts' consensus estimates of $1.42 by $0.08, FiscalAI reports. The company had revenue of $507.33 million during the quarter, compared to analysts' expectations of $504.91 million. Federated Hermes had a return on equity of 34.03% and a net margin of 21.30%. Federated Hermes's revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the business posted $1.34 EPS.

Federated Hermes Stock Up 2.1%

Shares of NYSE:FHI traded up $1.21 during midday trading on Thursday, reaching $57.99. 1,008,147 shares of the company were exchanged, compared to its average volume of 795,992. Federated Hermes has a fifty-two week low of $46.66 and a fifty-two week high of $67.20. The company has a quick ratio of 1.89, a current ratio of 2.59 and a debt-to-equity ratio of 0.28. The stock has a fifty day simple moving average of $58.70 and a two-hundred day simple moving average of $57.35. The firm has a market cap of $4.33 billion, a PE ratio of 10.55, a P/E/G ratio of 1.50 and a beta of 0.66.

Wall Street Analyst Weigh In

FHI has been the subject of several research analyst reports. Royal Bank Of Canada boosted their price target on shares of Federated Hermes from $54.00 to $57.00 and gave the company a "sector perform" rating in a report on Thursday, July 2nd. TD Cowen dropped their price objective on Federated Hermes from $60.00 to $56.00 and set a "hold" rating on the stock in a research note on Monday, October 12th. Zacks Research downgraded Federated Hermes from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 9th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $58.00 target price on shares of Federated Hermes in a report on Monday, August 3rd. Finally, Evercore restated an "outperform" rating and issued a $65.00 price target on shares of Federated Hermes in a report on Monday, August 10th. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Federated Hermes presently has an average rating of "Hold" and an average price target of $57.80.

Federated Hermes Company Profile

Federated Hermes, Inc is a global investment management company that provides asset management services to individuals, financial intermediaries, corporations, governments and other institutions. The company manages a range of investment strategies, including equity, fixed-income, money market, multi-asset, alternative and liquidity management products.

Its offerings are distributed through mutual funds, exchange-traded funds, separately managed accounts, collective investment trusts and institutional mandates.

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