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Mar 31, 2020
Victory Capital Q1 2020 Earnings Report
Reported excellent financial results despite COVID-19 challenges, with cost structure adjusting to market fluctuations and strategic capital management actions taken.
Key Takeaways
Victory Capital reported strong first-quarter financial results, driven by its resilient business model and strategic actions, despite challenges from the COVID-19 pandemic. The company's cost structure adjusted to market fluctuations, and opportunistic capital management actions were taken, including debt repricing and interest rate swaps. The company also continued to evaluate strategic acquisition candidates and maintained a disciplined capital allocation strategy.
AUM totaled $123.8 billion.
GAAP net income was $0.77 per diluted share, up 285% versus first quarter 2019.
Adjusted net income with tax benefit was $0.92 per diluted share, up 163% versus first quarter 2019.
The board authorized a regular quarterly cash dividend of $0.05 per share.
Forward Guidance
Victory Capital is actively evaluating strategic acquisition candidates and conducting due diligence, and remains committed to its strategy to enhance shareholder value.
Positive Outlook
- Investments to support future growth
- Committed to enhancing shareholder value
- Actively evaluating strategic acquisition candidates
- Conducting due diligence
- Flexible business model ideally positions to benefit in this environment
Challenges Ahead
- Persistent market volatility may accelerate industry consolidation
- COVID-19 pandemic and its effect on business
- Reductions in AUM based on investment performance
- Client withdrawals
- Difficult market conditions
Historical Earnings Impact
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Avg. Return Before/After Earnings
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