Markets

WisdomTree Investments (WETF) Q4 Earnings Lag on Low Revenue

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:

An Earnings Miss

WisdomTree came out with adjusted earnings per share of 3 cents, missing the Zacks Consensus Estimate of 6 cents. Moreover, the figure declined 80% from the prior year quarter earnings. Results reflected a decline in revenues and a rise in expenses. Results exclude one-time items.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for WisdomTree remained stable prior to the earnings release. The Zacks Consensus Estimate has remained unchanged at 6 cents over the last 7 days.

Overall, WisdomTree boasts of a decent earnings surprise history.

WisdomTree Investments, Inc. Price and EPS Surprise

WisdomTree Investments, Inc. Price and EPS Surprise | WisdomTree Investments, Inc. Quote

Revenue Came in Slightly Lower than Expected

WisdomTree posted revenues of $50.8 million, slightly below Zacks Consensus Estimate of $51.0 million. Further, revenues decreased 33.6% year over year.

Key Takeaways:

  • Reported Net Income: $2.5 million, down 87.9% from the prior-year quarter.
  • Total Expenses: $42.2 million, up 3.7% year over year.
  • As of Dec 31, 2016, U.S. listed ETF assets under management (AUM) was $40.2 billion, down 22.2% year over year. However, the company witnessed a 32.4% growth in European listed AUM which totaled $1.02 billion.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) 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.

(You can see the complete list of today's Zacks #1 Rank stocks here.)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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