NYSE$FHI

Federated Hermes Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported earnings for the fourth quarter and full-year 2021.

Federated Hermes reported Q4 2021 earnings per diluted share of $0.71, compared to $0.93 for the same quarter last year, on net income of $68.6 million for Q4 2021, compared to $95.2 million for Q4 2020. Total managed assets were a record $668.9 billion at Dec. 31, 2021.

  • Q4 2021 earnings per diluted share of $0.71; full-year 2021 EPS of $2.75
  • Total assets under management reach a record $668.9 billion
  • Long-term assets reach a record $221.0 billion
  • Board declares $0.27 per share quarterly dividend

Headline financials

Total Revenue

$322M

Previous: $364M-11.6%
EPS (adj)

$0.71

Previous: $0.93-23.7%
Capital Expenditures

$2.67M

Previous: $4.94M-46.0%
Free Cash Flow

$66.8M

Previous: $125M-46.5%
Net Income

$68.6M

Previous: $95.2M-28.0%
Operating Income

$88.6M

Previous: $115M-22.8%
Gross Profit

$198M

Previous: $226M-12.4%
Cash & Equivalents

$427M

Previous: $439M-2.8%
Total Assets

$2.02B

Previous: $2.06B-2.1%
Stock-Based Comp

$7.01M

Previous: $6.45M+8.8%

Revenue & EPS history

Federated Hermes · Revenue · Quarterly

$322M

Q4 2021-11.6%vs Q4 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

Market expectations are that the central bank will raise interest rates multiple times in 2022, starting in March. Higher yields in 2022 will lower the impact of voluntary yield-related fee waivers.

Tailwinds

  • Market expectations are that the central bank will raise interest rates multiple times in 2022, starting in March
  • Higher yields in 2022 will lower the impact of voluntary yield-related fee waivers.
  • The net negative impact on pre-tax income from voluntary yield-related fee waivers on money market mutual funds and certain separate accounts may be approximately $22 million during Q1 2022.
  • Assuming an increase in interest rates of 25 basis points by the Federal Reserve in March 2022, the Q1 estimated $22 million of net negative impact on pre-tax income from voluntary yield-related waivers is expected to be reduced by approximately 90% for Q2.

Headwinds

  • Federated Hermes' level of business activity and financial results are dependent upon many factors, including market conditions, investment performance and investor behavior.
  • These factors and others, including asset levels and mix, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers, expenses and regulatory changes, can significantly impact Federated Hermes' business activity levels and financial results.
  • Risk factors and uncertainties that can influence Federated Hermes' financial results are discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission (SEC).
  • Any change in these factors can impact the amount and level of voluntary yield-related fee waivers, including in a material way.

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 2021

Historical avgQ4 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%

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