Federated Investors, Inc. (FII) has reported a 9.24 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $49.64 million, or $0.49 a share in the quarter, compared with $45.44 million, or $0.44 a share for the same period last year. Revenue during the quarter went up marginally by 0.51 percent to $273.50 million from $272.11 million in the previous year period. Total expenses were 71.56 percent of quarterly revenues, down from 72.60 percent for the same period last year. This has led to an improvement of 104 basis points in operating margin to 28.44 percent.
Operating income for the quarter was $77.77 million, compared with $74.56 million in the previous year period.
"As investors sought income products in the first quarter, Federated's roster of bond funds offered a range of options, from our high-yield products to the Federated Floating Rate Strategic Income Fund, which is well-suited to a rising-rate environment," said J. Christopher Donahue, president and chief executive officer. "Additionally, the Federated Total Return Bond Fund, a core multisector bond strategy, experienced positive net sales."
Working capital declines
Federated Investors, Inc. has witnessed a decline in the working capital over the last year. It stood at $207.90 million as at Mar. 31, 2017, down 22.12 percent or $59.06 million from $266.96 million on Mar. 31, 2016. Current ratio was at 2.63 as on Mar. 31, 2017, down from 3.03 on Mar. 31, 2016. Days sales outstanding went down to 6 days for the quarter compared with 13 days for the same period last year.
Debt comes down
Federated Investors, Inc. has recorded a decline in total debt over the last one year. It stood at $159.38 million as on Mar. 31, 2017, down 24.24 percent or $51 million from $210.38 million on Mar. 31, 2016. Total debt was 14.06 percent of total assets as on Mar. 31, 2017, compared with 17.67 percent on Mar. 31, 2016. Debt to equity ratio was at 0.26 as on Mar. 31, 2017, down from 0.32 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
