Have you been eager to see how WisdomTree Investments, Inc. (NASDAQ:WETF) performed in Q1 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 Beat
WisdomTree came out with earnings per share of 5 cents, beating the Zacks Consensus Estimate by a penny. Results reflected a significant increase in other income.
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 4 cents over the last 7 days.
However, before posting earnings beat in Q1, the company delivered negative surprises in two of the prior four quarters. Overall, the company lagged the Zacks Consensus Estimate by an average of 28.1% in the trailing four quarters.
WisdomTree Investments, Inc. Price and EPS Surprise
Revenue Came in Higher than Expected
WisdomTree posted revenues of $54.6 million, above the Zacks Consensus Estimate of $53.2 million. However, revenues decreased 10.3% year over year.
Key Takeaways:
- Reported Net Income: $6.9 million, down 43% from the prior-year quarter.
- Total Expenses: $39.8 million, up 1.5% year over year.
- As of Mar 31, 2017, U.S. listed ETF assets under management (AUM) was $41.9 billion, down 5.2% year over year.
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. While things apparently look favorable, 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 (Strong Buy) stocks here.)
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WisdomTree Investments, Inc. (WETF): Free Stock Analysis Report
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