Waddell & Reed Financial (WDR) reported Q4 earnings that beat estimates while revenue was ahead as well.
Waddell reported Q4 net income of $80.9 million, or $0.97 per diluted share, compared to net income of $74.6 million, or $0.89 per diluted share, during the previous quarter and net income of $78.8 million, or $0.92 per diluted share, during Q4 2013. The Street expected $0.89 per share, according to Capital IQ estimates.
The Q3 2014 included a charge of $7.9 million ($5.0 million net of taxes, or $0.06 per diluted share) to recognize the impairment of an intangible asset.
“The second half of 2014 was unusually challenging for Waddell & Reed,” said Hank Herrmann, Chairman and Chief Executive Officer of Waddell & Reed Financial, Inc. in a statement. “Sales momentum meaningfully decelerated while redemptions rose. Much of this reversal in trends can be attributed to weakness in performance in one of our key funds and the loss of investors’ appetite for high yield products.”
Operating revenues of $397.2 million declined 3% sequentially. The Street expected $389 million.