NASDAQ$DHIL

Diamond Hill Investment Group Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Diamond Hill reported results for the third quarter of 2020.

Diamond Hill Investment Group reported a decrease in revenue and net income for Q3 2020, primarily due to a shift towards lower fee strategies. Despite these challenges, the company saw net inflows and maintained a strong cash position. The board approved a special cash dividend and the initiation of a quarterly dividend.

  • Assets under management (AUM) reached $22.3 billion, an increase from $20.6 billion in the previous quarter and $22.2 billion year-over-year.
  • Net inflows were $98 million, compared to $332 million in the same period of 2019.
  • Revenue decreased to $31.2 million, down from $34.6 million in Q3 2019, due to a higher mix of assets in lower fee strategies.
  • Net income attributable to common shareholders was $10.6 million, a decrease from $11.4 million in Q3 2019.

Headline financials

Total Revenue

$31.2M

Previous: $34.6M-9.9%
EPS (adj)

$3.30

Previous: $3.35-1.5%
Capital Expenditures

-$1.73M

Previous: -$610K-184.3%
Free Cash Flow

$36.5M

Previous: $39.5M-7.6%
Net Income

$10.6M

Previous: $11.4M-7.5%
Operating Income

$9.97M

Previous: $12.8M-21.8%
Gross Profit

$512K

Previous: $17.7M-97.1%
Cash & Equivalents

$197M

Previous: $118M+67.1%
Total Assets

$269M

Previous: $290M-7.1%
Stock-Based Comp

$2.09M

Previous: $2.13M-1.6%

Revenue & EPS history

Diamond Hill · Revenue · Quarterly

$31.2M

Q3 2020-9.9%vs Q3 2019

Forward guidance

Diamond Hill anticipates the continuation of the COVID-19 pandemic to potentially affect future operating results, cash flows, and financial position. However, the full impact remains uncertain due to the unpredictable duration and severity of the pandemic and its economic consequences.

Tailwinds

  • The Company expects to pay an ongoing quarterly dividend of $1.00 per share.
  • The board of directors will consider paying an additional special dividend each year.
  • The company's approach to capital allocation is designed to ensure sufficient cash to run the business in any market environment.
  • The approach to capital allocation will allow the company to invest in new strategies.
  • The approach to capital allocation will allow the company to return capital to shareholders.

Headwinds

  • The COVID-19 pandemic could continue to affect the company's results of operations.
  • The COVID-19 pandemic could continue to affect the company's cash flows.
  • The COVID-19 pandemic could continue to affect the company's financial position.
  • The full impact of the COVID-19 pandemic cannot be reasonably estimated due to uncertainty surrounding its duration and severity.
  • The pandemic and the related responses to COVID-19 could continue to affect our results of operations, cash flows and financial position.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+0.4%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+9.8%

Q4 2021

Best reaction

-6.9%

Q4 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+0.2%+0.8%+0.5%
Q3 2025-2.4%-2.2%-9.3%
Q2 2025-3.4%-6.3%-2.9%
Q1 2025-2.9%+4.7%+8.9%
Q4 2024-0.5%+1.0%-1.1%
Q3 2024+1.8%+9.7%+8.5%
Q2 2024-3.5%-9.7%-3.2%
Q1 2024+5.5%+2.9%-1.3%
Q4 2023+3.1%+3.3%+4.7%
Q3 2023-5.2%-2.3%+3.0%
Q2 2023-2.2%-2.2%-5.1%
Q1 2023-0.2%+0.4%+8.9%
Q4 2022-5.6%-6.5%-13.4%
Q3 2022-1.1%-0.3%+1.9%
Q2 2022-2.5%-3.9%-12.6%
Q1 2022-5.0%-6.7%-0.8%
Q4 2021+9.8%+17.1%+6.2%
Q3 2021+4.3%+10.7%+18.0%
Q2 2021+4.9%+6.1%+11.9%
Q1 2021+4.9%+7.3%+9.6%
Q4 2020-5.4%+0.3%+7.8%
Q3 2020+1.1%-1.2%+4.6%
Q2 2020-1.6%+3.9%+5.9%
Q1 2020+5.6%+3.2%+8.0%
Q4 2019-4.9%-5.4%-37.5%
Q3 2019+3.7%+7.7%+8.7%
Q2 2019-1.7%-2.0%-2.0%
Q1 2019+0.0%+1.7%-0.7%
Q4 2018-6.9%-8.7%-14.2%
Q3 2018+2.5%+1.5%+4.1%
Q2 2018+0.1%-1.7%-2.7%
Q1 2018-2.9%-1.7%+1.6%
Q4 2017-2.2%-1.6%-6.5%
Q3 2017+3.4%+0.6%+1.5%
Q2 2017-0.6%+0.1%-4.2%
Q1 2017+3.0%+1.9%+1.6%
Q4 2016-2.5%-3.4%-8.4%
Q3 2016-2.9%-0.8%+15.4%
Q2 2016-0.3%+2.4%-0.5%
Q1 2016-0.8%
Q4 2015-5.4%
Q3 2015+0.9%
Q2 2015-1.4%
Q1 2015+2.2%
Q4 2014+1.2%
Q3 2014+1.5%
Q2 2014-1.4%
Q1 2014-1.1%
Q4 2013+1.7%
Q3 2013-0.1%
Q2 2013+0.3%
Q1 2013-0.3%
Q4 2012+1.8%
Q3 2012+1.7%
Q2 2012+5.0%
Q1 2011+0.0%
Q1 2012+0.9%
Q4 2011+1.8%
Q4 2009+1.8%
Q3 2011-6.0%
Q3 2010-6.0%
Q4 2010+1.0%
Q2 2010+1.0%
Q2 2011+1.0%
Q1 2010-1.9%

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