NYSE$FHI

Federated Hermes Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported earnings for the first quarter of 2021, showing increased EPS and net income compared to Q1 2020, with record long-term assets.

Federated Hermes reported a strong first quarter in 2021, with earnings per diluted share increasing to $0.75 from $0.63 in the same quarter last year. Net income also rose to $74.5 million from $64.2 million year-over-year. The company's total managed assets reached $625.0 billion, driven by strong investment performance and client interest.

  • Earnings per diluted share (EPS) increased to $0.75 for Q1 2021, compared to $0.63 for Q1 2020.
  • Net income for Q1 2021 was $74.5 million, up from $64.2 million for Q1 2020.
  • Total managed assets reached $625.0 billion at the end of Q1 2021, a 3% increase year-over-year.
  • Equity assets under management hit a record $96.2 billion, and fixed-income assets reached a record $86.5 billion.

Headline financials

Total Revenue

$341M

Previous: $359M-5.0%
EPS (adj)

$0.75

Previous: $0.63+19.0%
Dividend Per Share

$0.27

No prior period
Capital Expenditures

-$2.16M

Previous: -$1.56M-38.7%
Free Cash Flow

$72.3M

Previous: $62.6M+15.5%
Net Income

$74.5M

Previous: $64.2M+16.1%
Operating Income

$97.5M

Previous: $92.7M+5.1%
Gross Profit

$198M

Previous: $244M-19.0%
Cash & Equivalents

$223M

Previous: $381M-41.6%
Total Assets

$2.01B

Previous: $1.93B+4.4%
Stock-Based Comp

$9.22M

Previous: $7.47M+23.4%

Revenue & EPS history

Federated Hermes · Revenue · Quarterly

$341M

Q1 2021-5%vs Q1 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Federated Hermes · $322M total across 3 segments · Q4 2021

  • Advisory Fees
    $224M-15.7%
  • Admin Fees
    $77.7M-1.8%
  • Other Service Fees
    $20.1M+5.1%

Forward guidance

Federated Hermes anticipates a negative impact from minimum yield waivers during Q2 2021, projecting a pre-tax impact ranging from $35 million to $45 million.

Headwinds

  • The negative impact on pre-tax income from minimum yield waivers on money market mutual funds and certain separate accounts may range from $35 million to $45 million during Q2 2021.
  • This range is based on gross yields on government money market portfolios of 3 to 10 basis points.
  • The amount of minimum yield waivers can vary based on a number of factors, including, among others, interest rates, yields, asset levels, asset flows and the ability of distributors to share in waivers.
  • Any change in these factors can impact the amount and impact of minimum yield waivers, including in a material way.
  • Federated Hermes' level of business activity and financial results are dependent upon many factors, including market conditions, investment performance and investor behavior.

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 2021

Historical avgQ1 2021

-0.1%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+1.4%

Avg return

30 days after

47%

31 / 66 earnings

Positive

+12.3%

Q3 2012

Best reaction

-12.9%

Q1 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%-4.3%-3.5%
Q4 2025+0.3%+0.2%+5.6%
Q3 2025+4.5%+6.2%+6.1%
Q1 2025+4.7%+6.0%+9.9%
Q4 2024+0.1%-1.0%-2.5%
Q3 2024+1.6%+4.4%+11.3%
Q2 2024+0.8%+0.3%-1.8%
Q1 2024-6.2%-6.1%-7.0%
Q4 2023+2.2%+5.7%+2.5%
Q3 2023+3.2%+3.8%+3.5%
Q2 2023-6.7%-7.2%-5.1%
Q1 2023-1.0%-1.9%-13.8%
Q4 2022+3.0%+4.6%+3.5%
Q3 2022+10.3%+9.9%+17.7%
Q2 2022-1.2%-1.7%+0.3%
Q1 2022-2.0%+0.4%+18.1%
Q4 2021-0.3%-0.8%+0.3%
Q3 2021+3.7%+6.9%+6.5%
Q2 2021+0.2%-0.1%+6.7%
Q1 2021-4.4%+1.5%+5.6%
Q4 2020-5.7%-4.9%-6.7%
Q3 2020+5.4%+11.1%+22.5%
Q2 2020+6.8%+3.4%-0.5%
Q1 2020-6.4%-3.4%-3.1%
Q4 2019+6.1%+9.7%-15.5%
Q3 2019-4.1%-1.5%+3.8%
Q2 2019+4.9%+3.3%-6.0%
Q1 2019-5.8%-6.9%-6.5%
Q4 2018-1.6%+3.1%+11.7%
Q3 2018+12.2%+16.0%+18.5%
Q2 2018-0.0%+3.2%-1.0%
Q1 2018-12.9%-18.0%-19.9%
Q4 2017+4.3%-0.3%-4.8%
Q3 2017+2.7%+3.9%+4.4%
Q2 2017-4.1%-3.4%-8.5%
Q1 2017-3.9%-4.9%-3.7%
Q4 2016-5.2%-5.7%-1.5%
Q3 2016+1.1%-1.2%+4.4%
Q2 2016-0.1%-1.0%+1.2%
Q1 2016-1.9%
Q4 2015-0.2%
Q3 2015+5.5%
Q2 2015-0.4%
Q1 2015+0.7%
Q4 2014+1.4%
Q3 2014+5.4%
Q2 2014-3.5%
Q1 2014-2.4%
Q4 2013-4.7%
Q3 2013+3.0%
Q2 2013-3.0%
Q1 2013-2.2%
Q4 2012-1.9%
Q3 2012+12.3%
Q2 2012+0.3%
Q1 2012+3.3%
Q4 2011-3.1%
Q4 2008-3.1%
Q3 2011-8.4%
Q2 2011-4.8%
Q1 2011+0.9%
Q4 2010-4.0%
Q3 2010-0.6%
Q2 2010+1.1%
Q4 2009+1.1%
Q1 2010-4.4%

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