Federated Investors, Inc. Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2014
January 23, 2015 at 02:37 am IST
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Federated Investors, Inc. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company reported total revenue of $217,858,000 compared to $214,722,000 a year ago. Operating income was $61,634,000 compared to $59,758,000 a year ago. Income before income taxes was $62,157,000 compared to $64,215,000 a year ago. Net income was $39,613,000 compared to $41,071,000 a year ago. Basic and diluted earnings per share were $0.38 compared to $0.39 a year ago. Revenue increased by $3.1 million or 1% due to higher average equity assets under management, partially offset by lower average money market assets. The increase in revenue was also due to a decrease in voluntary fee waivers related to certain money market assets primarily due to lower average money market assets.
For the year, the company reported total revenue of $859,250,000 compared to $878,365,000 a year ago. Operating income was $237,949,000 compared to $251,743,000 a year ago. Income before income taxes was $239,352,000 compared to $259,015,000 a year ago. Net income was $149,236,000 compared to $162,177,000 a year ago. Basic and diluted earnings per share were $1.42 compared to $1.55 a year ago. Revenue decreased by $19.1 million or 2% primarily due to lower average money market assets, increased voluntary fee waivers related to certain money market funds and a change in the mix of average fixed-income assets. The decrease was partially offset by higher average equity assets.
Federated Hermes, Inc. is an investment management company. The Company operates through a single segment, being the investment management business. It sponsors, markets and provides investment-related services to various investment products, including sponsored investment companies and other funds (Federated Hermes Funds); and Separate Accounts, which include separately managed accounts (SMAs), institutional accounts, sub-advised funds and other managed products in both domestic and international markets. In addition, it markets and provides stewardship and real estate development services to various domestic and international companies. The Company provides investment advisory services to approximately 180 Federated Hermes Funds. It markets these funds to institutional customers and banks, broker/dealers and other financial intermediaries who use them to meet the needs of customers and/or clients, including, among others, retail investors, corporations and retirement plans.