FHI - Federated Hermes Q4 profit revenue fall short of consensus as expenses swell

Federated Hermes ( NYSE: FHI ) stock slipped 2% in after-hours trading after the investment manager turned in worse-than-expected top and bottom lines for the fourth quarter that featured a notable increase in operating expenses.

Q4 EPS of $0.63 , falling short of the average analyst estimate of $0.75, slid from $0.78 in Q3 and from $0.71 in the year-ago quarter. Revenue of $373.9M, missing the $383.3M consensus, fell from $381.14M in Q3 and increased from $321.6M a year earlier.

Total operating expenses were $310.15M for the quarter ended Dec. 31, 2022, up from $284.36M for the quarter ended Sept. 30, 2022, and from $233.06M in for the quarter ended Dec. 31, 2021.

Operating income was $63.75M, down from $96.78M in Q3 and from $88.58M in Q4 2021.

Equity assets of $81.5B gained 9% from Q3; fixed-income assets of $86.7B advanced from $85.4B in Q3; alternative/private markets assets of $20.8B rose 3% from Q3; and money market assets rose 8% Q/Q to a record $476.8B.

Earlier, Federated Hermes GAAP EPS of $0.63 misses by $0.11, revenue of $373.9M misses by $7.13M .

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