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Dec 31, 2021
Federated Hermes Q4 2021 Earnings Report
Reported earnings for the fourth quarter and full-year 2021.
Key Takeaways
Federated Hermes reported Q4 2021 earnings per diluted share of $0.71, compared to $0.93 for the same quarter last year, on net income of $68.6 million for Q4 2021, compared to $95.2 million for Q4 2020. Total managed assets were a record $668.9 billion at Dec. 31, 2021.
Q4 2021 earnings per diluted share of $0.71; full-year 2021 EPS of $2.75
Total assets under management reach a record $668.9 billion
Long-term assets reach a record $221.0 billion
Board declares $0.27 per share quarterly dividend
Federated Hermes
Federated Hermes
Federated Hermes Revenue by Segment
Revenue by Segment
Investment advisory fees, net Revenue
CapyFin.comAdministrative service fees, net Revenue
CapyFin.comOther service fees, net Revenue
CapyFin.com Forward Guidance
Market expectations are that the central bank will raise interest rates multiple times in 2022, starting in March. Higher yields in 2022 will lower the impact of voluntary yield-related fee waivers.
Positive Outlook
- Market expectations are that the central bank will raise interest rates multiple times in 2022, starting in March
- Higher yields in 2022 will lower the impact of voluntary yield-related fee waivers.
- The net negative impact on pre-tax income from voluntary yield-related fee waivers on money market mutual funds and certain separate accounts may be approximately $22 million during Q1 2022.
- Assuming an increase in interest rates of 25 basis points by the Federal Reserve in March 2022, the Q1 estimated $22 million of net negative impact on pre-tax income from voluntary yield-related waivers is expected to be reduced by approximately 90% for Q2.
Challenges Ahead
- Federated Hermes' level of business activity and financial results are dependent upon many factors, including market conditions, investment performance and investor behavior.
- These factors and others, including asset levels and mix, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers, expenses and regulatory changes, can significantly impact Federated Hermes' business activity levels and financial results.
- Risk factors and uncertainties that can influence Federated Hermes' financial results are discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission (SEC).
- Any change in these factors can impact the amount and level of voluntary yield-related fee waivers, including in a material way.
Revenue & Expenses
Visualization of income flow from segment revenue to net income