Have you been eager to see how WisdomTree Investments, Inc. (NASDAQ:WETF) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based exchange-traded fund (‘ETF’) and exchange-traded product (‘ETP’) sponsor and asset manager’s earnings release this morning:
Earnings Down
WisdomTree came out with earnings per share of 3 cents. Excluding $6.0 million charge related to the company's accelerated buyout of the remaining 25% stake in its European unit, adjusted earnings were 7 cents per share. Notably, the prior year quarter earnings were 18 cents. The Zacks Consensus Estimate for the reported quarter was 8 cents per share.
Results reflected significant decline in revenues that was due to reduced assets under management (AUM). Also the quarter recorded higher expenses.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for WisdomTree Financial remained stable prior to the earnings release. The Zacks Consensus Estimate has remained unchanged at 8 cents over the last 7 days.
The company has a decent earnings surprise history.
Revenues Decline
WisdomTree posted revenues of $56.0 million, declining 31.4% year over year. However the reported figure came slightly above Zacks Consensus Estimate of $55 million. However, revenues.
Key Takeaways:
Net Income nose-dived 84.9% year over year to $3.7 million.
Total Expenses of $44.8 million increased 10.3% year over year.
As of Jun 30, 2016, U.S. listed ETF assets under management (AUM) was $38.0 billion, down 37.9% year over year, mainly driven by net outflows. However, the company witnessed significant growth in European listed AUM which totaled $952.0 million.
Jonathan Steinberg, WisdomTree CEO and President stated, "Our largest Japan and European based exposures experienced outflows as these markets remained broadly out of favor during the quarter, more than offsetting inflows in domestic equities.” Steinberg further added, "We are excited about the growth opportunities for the ETF industry and believe many of WisdomTree's recent accomplishments and initiatives position us well for the future”
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) for WisdomTree. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this WETF earnings report!
WISDOMTREE INV (WETF): Free Stock Analysis Report
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