Victory Capital Q2 revenue rises 24%, beats estimates on higher AUM
Victory Capital Q2 revenue rises 24%, beats estimates on higher AUM
Overview
U.S. asset manager's Q2 revenue rose 24% yr/yr, beating analyst expectations
Q2 adjusted net income beat analyst expectations
Company repurchased 1.1 mln shares during quarter
Outlook
Company did not provide specific financial guidance for the current qtr or full yr
Result Drivers
HIGHER AUM AND MARKET ACTION - Co said revenue growth was primarily due to higher average AUM and $28.5 bln in positive market action
BROAD-BASED NET INFLOWS - Co said record gross sales and positive net flows were driven by international distribution, U.S. institutional channel, and ETF platform
LOWER ACQUISITION-RELATED COSTS - Co said operating margin expansion was partly due to a decrease in acquisition-related costs
Company press release: ID:nBw5NvjrGa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $435.40 mln | $386.09 mln (5 Analysts) |
Q2 EPS |
| $1.68 |
|
Q2 Adjusted Net Income | Beat | $172.20 mln | $146.78 mln (4 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and no "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 Victory Capital Holdings, Inc. is $95.00, about 7.4% below its August 4 closing price of $102.62
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago
Reuters Recommended Reads
Aug 5 - Canada's Sprott Q2 net income more than doubles on higher average AUM
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Aug 5 - Brookfield Asset Management Q2 fee-related earnings rise 20%
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(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.)