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Jun 30, 2020
Victory Capital Q2 2020 Earnings Report
Reported record financial results with increased AUM and improved profitability.
Key Takeaways
Victory Capital reported strong second-quarter results, marked by a significant increase in revenue and net income compared to the previous year, driven by the acquisition of USAA Asset Management Company. The company saw a rise in assets under management (AUM) and improved operating margins, reflecting enhanced operating leverage. The board also authorized a 20% increase in the regular quarterly cash dividend.
Total Assets Under Management (AUM) reached $129.1 billion.
Long-term gross flows were $5.2 billion with net outflows of $3.0 billion.
GAAP net income was $0.61 per diluted share, a 205% increase year-over-year.
Adjusted net income with tax benefit was $0.89 per diluted share, up 135% year-over-year.
Forward Guidance
The company is focused on integrating the USAA acquisition, launching a new digital experience, and evaluating potential acquisition opportunities. Victory Capital aims to continue reducing debt and enhancing service to members, while also broadening its commitment to responsible investing.
Positive Outlook
- Successful integration of the USAA acquisition.
- Launch of a new digital experience to enhance service.
- Commitment to responsible investing through PRI signatory.
- Strong investment performance of Investment Franchises.
- Focus on debt reduction and potential acquisition opportunities.
Challenges Ahead
- Challenging market environment and extreme volatility.
- Net outflows including asset flows related to the closing of the sale of USAA’s brokerage business.
- Decrease in revenue compared to the previous quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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