UPDATE: Waddell & Reed Financial Posts Upbeat Q4 Earnings

reported stronger-than-expected earnings for the fourth quarter. The Overland Park, Kansas-based company posted quarterly earnings of $80.9 million, or $0.97 per share, compared to $78.8 million, or $0.92 per share, in the year-ago period. Its revenue gained 5.9% to $397.2 million. However, analysts were expecting earnings of $0.89 per share on revenue of $389.8 million. Sales in Advisors channel rose 1% from the prior quarter to $1.3 billion, while sales in Institutional channel slipped 3% sequentially to $317 million. “The second half of 2014 was unusually challenging for Waddell & Reed,” said Hank Herrmann, Chairman and Chief Executive Officer of Waddell & Reed Financial, Inc. “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.” Waddell & Reed shares closed at $45.49 yesterday.