Vinci Compass Investments (NASDAQ:VINP) Announces Earnings Results

Key Points

• Quarterly EPS missed expectations: Vinci Compass reported $0.21 per share versus analysts’ consensus of $0.30.
• Core fee-related performance strengthened: Fee-related earnings rose 39% year over year to BRL 107 million, and assets under management increased 15% to BRL 363 billion.
• Cash earnings were pressured: Adjusted distributable earnings were BRL 71 million as lower realized financial income and higher expenses offset segment growth. Record net income included a BRL 99 million unrealized gain that did not contribute to third-quarter distributable earnings.

Vinci Compass Investments (NASDAQ:VINP - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $0.21 earnings per share for the quarter, missing analysts' consensus estimates of $0.30 by ($0.09), Zacks reports. Vinci Compass Investments had a return on equity of 12.65% and a net margin of 23.77%.

Here are the key takeaways from Vinci Compass Investments' conference call:

• Record recurring results: Fee-related earnings rose 39% year over year to BRL 107 million, while the FRE margin expanded to 34.3%. Management said organic fee-related revenue grew 12% and adjusted fee-related earnings grew 28%, excluding acquisitions and this quarter’s severance costs.
• VPCS could add a new source of growth and earnings: The planned AustralRe acquisition is expected to close in the first quarter of 2027 and, subject to approvals, to deliver double-digit accretion to distributable earnings per share. Management says permanent capital would support strategy seeding and move GP commitments out of the asset-management business.
• AUM reached BRL 363 billion, up 15% year over year, with BRL 4 billion of quarterly net inflows led by Global IP&S. Fundraising in some closed-end strategies was more moderate, though executives pointed to potential support from regulatory changes in Chile and Colombia.
• Cash earnings faced pressure: Adjusted distributable earnings were BRL 71 million, or BRL 1.07 per share, as lower realized financial income, higher financial expenses and minority interests offset growth in segment distributable earnings. Realized financial income fell 43% year over year amid capital calls.
• Net income reached a record BRL 184 million, but included a BRL 99 million unrealized gain related to the Galeão indemnification, which did not contribute to third-quarter distributable earnings. Management expects the gain to be realized in the fourth quarter.

Vinci Compass Investments Stock Down 0.7%

NASDAQ:VINP traded down $0.06 during trading hours on Thursday, reaching $8.81. The company had a trading volume of 221,914 shares, compared to its average volume of 74,382. The company has a quick ratio of 3.58, a current ratio of 3.58 and a debt-to-equity ratio of 0.38. The firm has a market cap of $576.37 million, a price-to-earnings ratio of 12.59 and a beta of 0.31. The business's 50-day simple moving average is $9.77 and its two-hundred day simple moving average is $10.36. Vinci Compass Investments has a twelve month low of $8.40 and a twelve month high of $13.61.

Insider Buying and Selling at Vinci Compass Investments

In other news, insider Fernando Lovisotto sold 13,452 shares of the firm's stock in a transaction dated Friday, October 23rd. The stock was sold at an average price of $11.41, for a total value of $153,487.32. Following the completion of the sale, the insider directly owned 875,954 shares in the company, valued at $9,994,635.14. This trade represents a 1.51% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Augusto Zaremba sold 19,815 shares of the business's stock in a transaction dated Friday, October 23rd. The shares were sold at an average price of $11.43, for a total value of $226,485.45. Following the completion of the sale, the insider directly owned 915,442 shares of the company's stock, valued at $10,463,502.06. The trade was a 2.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 241,712 shares of company stock valued at $2,694,007. Insiders own 49.31% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. Zacks Research lowered Vinci Compass Investments from a "hold" rating to a "strong sell" rating in a research report on Thursday, September 10th. JPMorgan Chase & Co. lowered their target price on Vinci Compass Investments from $15.00 to $14.00 and set an "overweight" rating for the company in a report on Thursday, September 10th. Weiss Ratings downgraded Vinci Compass Investments from a "hold (c)" rating to a "hold (c-)" rating in a report on Wednesday, November 4th. Finally, UBS Group dropped their price target on Vinci Compass Investments from $12.00 to $10.50 and set a "buy" rating on the stock in a research note on Monday. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Vinci Compass Investments has a consensus rating of "Hold" and an average price target of $12.25.

About Vinci Compass Investments

Vinci Compass Investments is an alternative investment and asset-management firm with roots in Brazil. It provides investment products and services to institutional and individual clients, with strategies spanning private equity, infrastructure, real estate, credit and public markets. The company's platform serves clients in Brazil and other Latin American markets. Its business traces its origins to Vinci Partners, founded in 2009, and its regional presence has expanded through the combination with Compass Group.

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