Federated Hermes (FHI) Q2 FY2024 earnings: revenue $403 million, down 7.1% on the year

Federated Hermes, Inc. (FHI) reported revenue of $403 million for Q2 FY2024, the quarter ended 30 June 2024, down 7.1% on the same quarter a year earlier. Net income was $21 million, down 70.9% on the year, and diluted earnings per share $0.20. The figures are the company's own, from the 10-Q it filed with the SEC on 26 July 2024.

Revenue$403 milliondown 7.1%

Net income$21 milliondown 70.9%

Diluted EPS$0.20

QuarterQ2 FY2024ended 30 June 2024

The quarter, against the one before and a year earlier

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Revenue	403	396	n/a	n/a
Operating income	40.7	98.6	n/a	n/a
Operating margin	10.1%	24.9%	n/a
Pre-tax income	42.7	104	n/a	n/a
Income tax	23.4	29.0	n/a	n/a
Effective tax rate	54.9%	27.9%	n/a
Net income	21.0	75.0	n/a	n/a
Net margin	5.2%	18.9%	n/a
Diluted EPS	$0.20	$0.89	n/a	n/a

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Operating cash flow	88.7	14.0	n/a	n/a
Capital expenditure	6.0	0.6	n/a	n/a
Free cash flow	82.7	13.5	n/a	n/a
Free cash flow margin	20.5%	3.4%	n/a
Cash from investing	3.6	27.6	n/a	n/a
Cash from financing	-145	-63.5	n/a	n/a
Share-based compensation	6.3	10.3	n/a	n/a
Buybacks	46.2	39.0	n/a	n/a
Dividends paid	110	23.7	n/a	n/a
Dividend per share	$1.31	$0.28	n/a	n/a
Diluted shares, weighted	80m	81m	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2024	Q1 FY2024	A year earlier	Change on the year
Shareholders' equity	1,017	1,147	n/a	n/a
Redeemable equity	30.5	73.1	n/a	n/a
Debt	348	348	n/a	n/a
Operating lease liabilities	85.7	89.6	n/a	n/a
Other liabilities	430	429	n/a	n/a
Total liabilities and equity	1,912	2,087	n/a	n/a
Fixed assets	32.2	28.6	n/a	n/a
Goodwill	806	806	n/a	n/a
Intangible assets	336	404	n/a	n/a
Cash and equivalents	307	360	n/a	n/a
Other assets	430	488	n/a	n/a
Total assets	1,912	2,087	n/a	n/a

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	403	391	396	403	408	425	424	425	469	483	479	503
Operating income	101	103	98.6	40.7	112	110	132	117	129	136	126	133
Operating margin	25%	26%	25%	10%	27%	26%	31%	28%	28%	28%	26%	26%
Pre-tax income	101	117	104	42.7	123	112	136	131	140	140	130	144
Tax rate	26%	27%	28%	55%	26%	25%	24%	26%	24%	23%	26%	26%
Net income	75.0	82.2	75.0	21.0	87.5	84.7	101	91.0	104	107	96.4	104
Net margin	19%	21%	19%	5%	21%	20%	24%	21%	22%	22%	20%	21%
Diluted EPS	$0.86	$0.95	$0.89	$0.20	$1.06	$1.04	$1.25	$1.16	$1.34	$1.38	$1.27	$1.38
Operating cash flow	106	130	14.0	88.7	117	127	14.3	18.8	103	161	28.8	80.9
Capital expenditure	2.1	2.1	0.6	6.0	n/a	0.5	1.0	0.8	1.4	n/a	4.8	1.2
Free cash flow	104	128	13.5	82.7	n/a	126	13.3	18.0	102	n/a	24.0	79.7
Buybacks	64.1	65.1	39.0	46.2	28.9	23.4	120	65.5	0.0	77.1	64.7	64.0
Dividends paid	24.7	24.1	23.7	110	25.6	25.2	25.3	26.8	26.4	26.4	25.9	28.8
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 June 2024, filed 26 July 2024, accession 0001056288-24-000018: the filing on EDGAR. All of Federated Hermes, Inc.'s filings: EDGAR company page.

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