NASDAQ$DHIL

Diamond Hill Investment Group Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported strong financial results driven by focus on long-term investment outcomes and strategic capital allocation.

Diamond Hill Investment Group reported a strong third quarter in 2021, with revenue increasing significantly compared to the same period in 2020. The company benefited from performance-based fees and the sale of high yield-focused advisory contracts. They also announced a special dividend and an increase in the regular quarterly dividend for 2022.

  • Assets under management were $29.2 billion, which included a reduction of $3.5 billion from the sale of high yield-focused advisory contracts.
  • Revenue increased to $55.1 million, driven by $11.9 million in performance-based fees.
  • Net income attributable to common shareholders was $25.6 million, resulting in earnings per share of $8.03.
  • The company announced a special cash dividend of $19.00 per share and an increase in the regular quarterly dividend to $1.50 per share starting in 2022.

Headline financials

Total Revenue

$55.1M

Previous: $31.2M+76.6%
EPS (adj)

$8.03

Previous: $3.30+143.3%
Capital Expenditures

-$1.03M

Previous: -$1.73M+40.6%
Free Cash Flow

$14.3M

Previous: $36.5M-60.8%
Net Income

$25.6M

Previous: $10.6M+142.6%
Operating Income

$28.3M

Previous: $9.97M+184.1%
Gross Profit

$1.19M

Previous: $512K+131.4%
Cash & Equivalents

$217M

Previous: $197M+10.1%
Total Assets

$228M

Previous: $269M-15.3%
Stock-Based Comp

$2.08M

Previous: $2.09M-0.5%

Revenue & EPS history

Diamond Hill · Revenue · Quarterly

$55.1M

Q3 2021+76.6%vs Q3 2020

Forward guidance

Diamond Hill expects to maintain sufficient cash to operate the business and will continue to return excess capital to shareholders through dividends and share repurchases.

Tailwinds

  • The company anticipates continued focus on valuation-driven investment principles.
  • The company plans to maintain a long-term perspective in its investment strategies.
  • The company is committed to capacity discipline to manage growth effectively.
  • The company will continue to align its interests with those of its clients.
  • The company expects to increase the regular quarterly dividend.

Headwinds

  • A decline in the securities markets could adversely affect the company's performance.
  • Poor performance of the company's products could negatively impact results.
  • National, regional, and global economic conditions could present challenges.
  • Political uncertainty and changes in government policy could create headwinds.
  • The company faces the risk of being unable to attract or retain key employees.

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 2021

Historical avgQ3 2021

-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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