Overview
Federated Hermes Q2 2025 revenue beats analyst expectations, driven by higher average assets
Company reports record $845.7 bln assets under management, up 8% yr/yr
Board authorizes new share repurchase program, dividend at $0.34 per share
Outlook
Federated Hermes sees strategic introductions of popular investment strategies
Result Drivers
RECORD AUM - Total assets under management reached a record $845.7 bln, up 8% yr-over-yr, driven by increased money market and equity assets
MDT STRATEGIES - Company reported a significant increase in MDT strategies, which rose by $6.4 bln from Q1 2025, attributed to continued interest in equity and alternative quantitative investment solutions
DEMAND DRIVERS - Interest in capital preservation and liquidity drove demand for microshort and ultrashort funds, according to CEO J. Christopher Donahue
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$424.84 mln
$422.80 mln (4 Analysts)
Q2 EPS
$1.16
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy."
Wall Street's median 12-month price target for Federated Hermes Inc is $45.50, about 9.2% below its July 30 closing price of $49.70
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
Press Release: ID:nPn8HzfWTa
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)