Federated Hermes (NYSE:FHI) reported its Q4 results on Thursday, with EPS of $0.63 coming in worse than the Street estimate of $0.73. Revenue was $373.9 million, missing the Street estimate of $382.45 million.
Net outflows were greater than expected due to fixed income net outflows, though the Strategic Value Div fund had approximately $1 billion of net inflows. MMF AUM (Assets under management) growth could be meaningful as interest rates plateau.
Analysts at RBC Capital provided their views following the quarterly results. Noting some uncertainty around potential MMF regulatory changes, the analysts maintained their Sector Perform rating and $37 price target.