Investment management firm Federated Hermes (NYSE:FHI) will be reporting results this Thursday after market hours. Here's what you need to know.
Federated Hermes beat analysts' revenue expectations last quarter, reporting revenues of $502.8 million, up 18.3% year on year. It was a very strong quarter for the company, with a beat of analysts' EPS estimates.
Is Federated Hermes a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members .
This quarter, the market is expecting Federated Hermes's revenue to grow 7.2% year on year, slowing from the 14.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Federated Hermes has missed Wall Street's revenue estimates multiple times over the last two years.
Looking at Federated Hermes's peers in the asset management segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Artisan Partners delivered year-on-year revenue growth of 3.7%, beating analysts' expectations by 1.4%, and Blackstone reported a revenue decline of 2.3%, topping estimates by 1.5%. Blackstone traded up 7.7% following the results.
Read our full analysis of Artisan Partners's results here and Blackstone's results here .
Investors in the asset management segment have had steady hands going into earnings, with share prices flat over the last month. Federated Hermes is down 2.1% during the same time and is heading into earnings with an average analyst price target of $58.86 (compared to the current share price of $56.33).
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal.Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you're unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE .
