NASDAQ$WT

WisdomTree Investments Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

WisdomTree Investments Inc. reported mixed results for Q4 2019 with diluted EPS of $0.02 ($0.06 as adjusted) and net income of $4.3 million ($10.11 million as adjusted).

WisdomTree Investments reported a net income of $4.3 million and diluted EPS of $0.02 for Q4 2019. The company's ending AUM increased by 6.1% to $63.6 billion, driven by market appreciation and net inflows. Operating revenues increased by 1.8% to $68.9 million, primarily due to higher average AUM of U.S. listed products.

  • Ending AUM increased by 6.1% to $63.6 billion due to market appreciation and net inflows.
  • Net inflows were $368 million ($560 million excluding HEDJ/DXJ), driven by U.S. equity, fixed income, and emerging markets products.
  • Operating revenues increased by 1.8% to $68.9 million due to higher average AUM of U.S. listed products.
  • The company is pursuing an exit from its $58 million investment in AdvisorEngine Inc. and estimates a non-cash impairment charge of $22.0 million to $30.0 million.

Headline financials

Total Revenue

$68.9M

Previous: $67.9M+1.5%
EPS (adj)

$0.06

Previous: $0.06+0.0%
Ending AUM

$63.6B

No prior period
Net Outflows

$400M

No prior period
Average Advisory Fee

0.4%

No prior period
Operating Income Margin

21.5%

No prior period
Capital Expenditures

$22K

Previous: $26K-15.4%
Net Income

$4.26M

Previous: -$11.6M+136.8%
Operating Income

$14.8M

Previous: $11.8M+25.3%
Stock-Based Comp

$3.01M

Previous: $3.18M-5.3%

Revenue & EPS history

WisdomTree Investments Inc · Revenue · Quarterly

$68.9M

Q4 2019+1.5%vs Q4 2018
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

WisdomTree Investments Inc · $70.6M total across 1 segment · Q3 2022

  • Advisory Fees
    $70.6M-7.6%

Forward guidance

WisdomTree is focused on capitalizing on tailwinds, driving operating efficiencies, and investing in industry innovation in 2020.

Tailwinds

  • Funds' performance track records remain excellent.
  • Adoption of model portfolios by advisors is accelerating.
  • Strategic investment in Securrency, Inc. for blockchain integration.
  • Collaboration with Professor Jeremy Siegel to design and launch two model portfolios.
  • Positive net flows in four of the past five quarters.

Headwinds

  • Pursuing an exit from AdvisorEngine Inc. investment, expecting a non-cash impairment charge.
  • Operating expenses increased due to costs associated with the Bitcoin ETP launch and Brexit preparations.
  • Non-cash loss on revaluation of deferred consideration.
  • Effective income tax rate differs from the federal statutory rate.
  • Operating revenues decreased 2.1% as compared to 2018 due to a 3 basis point decline in our average global advisory fee and lower average AUM of our U.S. listed products due to AUM mix shift

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 Q4 2019

Historical avgQ4 2019

-0.9%

Avg return

Earnings day

-0.5%

Avg return

5 days after

+0.9%

Avg return

30 days after

44%

17 / 39 earnings

Positive

+9.0%

Q3 2018

Best reaction

-12.3%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.3%+12.1%+11.5%
Q4 2025-2.1%-1.9%+3.4%
Q3 2025-0.8%-2.2%-10.4%
Q1 2025+4.6%+6.3%+8.1%
Q4 2024-0.3%-1.0%-7.1%
Q3 2024+0.9%-0.7%+15.6%
Q2 2024+6.4%+9.3%-6.3%
Q1 2024-1.4%+2.1%+12.8%
Q4 2023+0.7%+1.9%+18.9%
Q3 2023-5.5%-4.6%+0.5%
Q2 2023-3.3%-5.3%+0.3%
Q1 2023+1.3%+2.1%+11.0%
Q4 2022-1.4%-0.5%+0.8%
Q3 2022+0.9%-1.1%-2.4%
Q2 2022-1.7%+3.2%-4.9%
Q1 2022-4.4%-3.8%-0.7%
Q4 2021-1.8%-1.6%+1.1%
Q3 2021+4.1%+9.3%+1.5%
Q2 2021-0.6%+3.2%+2.1%
Q1 2021+1.0%+4.2%-0.3%
Q4 2020-2.6%+0.5%-3.3%
Q3 2020+1.4%+5.0%+21.7%
Q2 2020+1.4%+5.4%+9.0%
Q1 2020-5.9%-10.2%-7.7%
Q4 2019+1.2%+7.2%-2.4%
Q3 2019+8.2%+6.4%+0.8%
Q2 2019+0.2%-1.7%-21.2%
Q1 2019-2.6%-8.3%-19.8%
Q4 2018-10.1%-7.8%+19.3%
Q3 2018+9.0%+12.4%+7.2%
Q2 2018+1.3%-12.9%-13.1%
Q1 2018+5.4%+10.5%+14.0%
Q4 2017-7.4%-11.0%-16.5%
Q3 2017+2.5%+1.2%-1.1%
Q2 2017-2.7%-2.3%-11.7%
Q1 2017-0.2%-1.0%+13.0%
Q4 2016-12.3%-14.7%-9.7%
Q3 2016-7.5%-14.8%+12.8%
Q2 2016-10.7%-12.5%-11.0%
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q1 2012
Q4 2011
Q4 2009
Q2 2011
Q3 2010
Q4 2010
Q2 2010
Q3 2011

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