Have you been eager to see how WisdomTree Investments, Inc.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:
Earnings Jump Year over Year
WisdomTree came out with earnings per share of 15 cents, significantly above the prior year quarter earnings of 7 cents per share. Notably, the reported figure came in line with the Zacks Consensus Estimate.
Results were primarily aided by robust revenue growth, partially offset by higher expenses.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for WisdomTree depicted optimism prior to the earnings release. The Zacks Consensus Estimate moved up 7.1% to 15 cents per share over the last 7 days.
Revenue Came in Higher than Expected
WisdomTree posted revenues of $76.5 million, which surpassed the Zacks Consensus Estimate of $75 million. Moreover, revenues increased 54.2% year over year.
Net Income came in at $20.5 million, up from $9.6 million in the prior-year quarter.
Total Expenses stood at $40.8 million, up 23.9% year over year.
Gross Margin in US listed ETFs came in at 85.6%, up from 82.5% in the prior-year quarter.
As of Dec 31, 2015, U.S. listed ETF assets under management (AUM) scaled to $51.6 billion, up 31.5% year over year, mainly driven by inflows. Also, the company witnessed significant growth in European listed AUM which totaled $773.9 million.
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. 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!