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WisdomTree (WETF) Q2 Earnings Miss Estimates, Revenues Rise

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Have you been eager to see how WisdomTree Investments, Inc. (WETF - Free Report) performed in Q2 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 Miss

WisdomTree came out with adjusted earnings per share of 6 cents which lagged the Zacks Consensus Estimate of 7 cents. Results reflected increase in revenues and lower expenses. Further, growth in assets under management was a tailwind.

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 7 cents over the last 7 days.

However, before posting earnings miss in Q2, the company delivered negative surprises in two of the prior four quarters. Overall, the company lagged the Zacks Consensus Estimate by an average of 21.9% in the trailing four quarters.

WisdomTree Investments, Inc. Price and EPS Surprise

Revenue Came in Higher than Expected

WisdomTree posted revenues of $63.4 million, above the Zacks Consensus Estimate of $56.5 million. Further, revenues increased 13.3% year over year.

Key Takeaways:

  • Reported Net Income: $12.1 million, significantly up from the prior-year quarter.
  • Total Expenses: $41.2 million, down 8.1% year over year.
  • As of Jun 30, 2017, U.S. listed ETF assets under management (AUM) was $43.2 billion, up 13.5% year over year. Also, the company witnessed a 52.9% growth in European listed AUM which totaled $1.5 billion.

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 unfavorable, 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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