NASDAQ$VCTR

Victory Capital Holdings Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported excellent financial results despite COVID-19 challenges, with cost structure adjusting to market fluctuations and strategic capital management actions taken.

Victory Capital reported strong first-quarter financial results, driven by its resilient business model and strategic actions, despite challenges from the COVID-19 pandemic. The company's cost structure adjusted to market fluctuations, and opportunistic capital management actions were taken, including debt repricing and interest rate swaps. The company also continued to evaluate strategic acquisition candidates and maintained a disciplined capital allocation strategy.

  • AUM totaled $123.8 billion.
  • GAAP net income was $0.77 per diluted share, up 285% versus first quarter 2019.
  • Adjusted net income with tax benefit was $0.92 per diluted share, up 163% versus first quarter 2019.
  • The board authorized a regular quarterly cash dividend of $0.05 per share.

Headline financials

Total Revenue

$203M

Previous: $87.5M+132.6%
EPS (adj)

$0.92

Previous: $0.35+162.9%
Ending AUM

$124B

No prior period
GAAP Operating Margin

44.3%

No prior period
Adjusted EBITDA Margin

44.8%

No prior period
Capital Expenditures

-$708K

Previous: -$484K-46.3%
Free Cash Flow

$56.5M

Previous: $14M+302.0%
Net Income

$57.2M

Previous: $14.5M+293.5%
Operating Income

$90.6M

Previous: $22.1M+309.6%
Gross Profit

$192M

Previous: -$4.62M+4253.4%
Cash & Equivalents

$37.1M

Previous: $66.3M-44.0%
Total Assets

$1.73B

Previous: $814M+112.8%

Revenue & EPS history

Victory Capital · Revenue · Quarterly

$203M

Q1 2020+132.6%vs Q1 2019
Beat estimate in 9 of 12 quarters(75%)
ActualEstimate

Forward guidance

Victory Capital is actively evaluating strategic acquisition candidates and conducting due diligence, and remains committed to its strategy to enhance shareholder value.

Tailwinds

  • Investments to support future growth
  • Committed to enhancing shareholder value
  • Actively evaluating strategic acquisition candidates
  • Conducting due diligence
  • Flexible business model ideally positions to benefit in this environment

Headwinds

  • Persistent market volatility may accelerate industry consolidation
  • COVID-19 pandemic and its effect on business
  • Reductions in AUM based on investment performance
  • Client withdrawals
  • Difficult market conditions

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 Q1 2020

Historical avgQ1 2020

+1.6%

Avg return

Earnings day

+2.1%

Avg return

5 days after

+1.3%

Avg return

30 days after

50%

20 / 40 earnings

Positive

+22.4%

Q3 2018

Best reaction

-6.6%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+4.0%+4.4%
Q4 2025-2.2%+8.3%-1.5%
Q3 2025-0.8%+3.0%+3.2%
Q1 2025-1.6%+7.6%+8.1%
Q4 2024+7.5%+3.4%-10.9%
Q3 2024+2.1%-0.0%+4.3%
Q2 2024+8.2%+9.1%+13.0%
Q1 2024-6.6%-1.3%-4.7%
Q4 2023+4.8%-0.6%+13.1%
Q3 2023+8.9%+5.2%+8.0%
Q2 2023+1.7%+0.1%+4.9%
Q1 2023+0.8%+2.5%+9.2%
Q4 2022-2.8%+4.7%-3.2%
Q3 2022+0.7%+3.0%+4.9%
Q2 2022-0.2%-1.1%-4.4%
Q1 2022-6.4%-10.1%+1.2%
Q4 2021-3.0%-3.5%-11.8%
Q3 2021+11.7%+10.4%-7.9%
Q2 2021+6.5%+7.0%+6.7%
Q1 2021+6.3%+3.6%+7.1%
Q4 2020+2.4%+0.8%+4.7%
Q3 2020+7.2%+7.3%+22.5%
Q2 2020+0.3%+3.7%-1.5%
Q1 2020+0.7%-6.1%+21.5%
Q4 2019-1.8%-2.4%-34.8%
Q3 2019+9.8%+11.3%+26.9%
Q2 2019-1.7%-8.2%-2.2%
Q1 2019+5.8%+16.9%+12.4%
Q4 2018-2.4%+1.6%+17.6%
Q3 2017-0.6%+1.3%-10.2%
Q3 2018+22.4%+39.9%+38.7%
Q2 2018-1.8%-0.5%-5.0%
Q1 2017-1.7%-2.6%+2.4%
Q1 2018-0.6%-4.5%+2.2%
Q2 2017-2.8%-6.6%-14.8%
Q2 2016-2.8%-6.6%-14.8%
Q4 2016-2.8%-6.6%-14.8%
Q3 2016-2.8%-6.6%-14.8%
Q4 2015-2.8%-6.6%-14.8%
Q4 2017+4.2%+3.2%-11.0%
Q1 2016

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro