Federated Investors (FII) has reported 17.29 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $55.84 million, or $0.52 a share in the quarter, compared with $47.61 million, or $0.46 a share for the same period last year. Revenue during the quarter grew 18.99 percent to $289.90 million from $243.64 million in the previous year period. Gross margin for the quarter expanded 24 basis points over the previous year period to 97.53 percent. Total expenses were 70.74 percent of quarterly revenues, up from 68.44 percent for the same period last year. That has resulted in a contraction of 230 basis points in operating margin to 29.26 percent.
Operating income for the quarter was $84.82 million, compared with $76.88 million in the previous year period.
"Federated more than doubled net equity sales in 2016 from 2015, with our Strategic Value Dividend strategies leading the way," said J. Christopher Donahue, president and chief executive officer. "On the fixed-income side, we saw fourth-quarter flows into products suited to a moderately rising-rate environment, including our ultrashort strategies, as well as our high-yield and floating-rate funds."
Working capital declinesFederated Investors has witnessed a decline in the working capital over the last year. It stood at $197.22 million as at Dec. 31, 2016, down 16.65 percent or $39.40 million from $236.62 million on Dec. 31, 2015. Current ratio was at 2.21 as on Dec. 31, 2016, down from 2.49 on Dec. 31, 2015.
Debt comes down Federated Investors has recorded a decline in total debt over the last one year. It stood at $165.75 million as on Dec. 31, 2016, down 13.33 percent or $25.50 million from $191.25 million on Dec. 31, 2015. Total debt was 14.35 percent of total assets as on Dec. 31, 2016, compared with 16.11 percent on Dec. 31, 2015. Debt to equity ratio was at 0.28 as on Dec. 31, 2016, down from 0.29 as on Dec. 31, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
