Have you been eager to see how WisdomTree Investments, Inc. (NASDAQ:WETF) performed in Q4 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:
An Earnings Miss
WisdomTree came out with adjusted earnings per share of 4 cents lagging the Zacks Consensus Estimate of 7 cents. Results reflected higher expenses, partially offset by increase in revenues and growth in assets under management.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for WisdomTree depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable at 7 cents over the last seven days.
However, before posting an earnings miss in Q4, the company delivered positive surprises in two of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of nearly 0.9% in the trailing four quarters.
WisdomTree Investments, Inc. Price and EPS Surprise
Revenue Came in Better than Expected
WisdomTree posted revenues of $61.4 million, which surpassed the Zacks Consensus Estimate of $61.1 million. Also, revenues increased 20.8% year over year.
Key Takeaways:
- The company recorded an after-tax charge of $0.4 million as a revaluation of deferred tax assets as a result of the passage of tax reform
- Total Expenses: $55.7 million, up 31.8% year over year
- As of Dec 31, 2017, U.S. listed ETF assets under management (AUM) was $46.8 billion, up 16.6% year over year. Also, the company witnessed a 76.1% growth in European listed AUM which totaled $1.8 billion
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for WisdomTree. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things look unfavorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
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WisdomTree Investments, Inc. (WETF): Free Stock Analysis Report
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Zacks Investment Research