Federated Investors’ Revenues Disappoint (FII)

Federated Investors, Inc.

reports Q2 EPS $0.46 vs consensus of $0.39. Federated Investors, Inc. reports Q2 revenue $231.5 million vs consensus of $237.28 million. Federated's Q2 2010 financial results include a recognition of insurance proceeds, which reduced operating expenses by $25.0 million, or $0.15 per diluted share, after tax. In addition, during Q2 2010, the company recorded a non-cash impairment charge of $7.0 million, or $0.04 per diluted share after tax, related to intangible and fixed assets associated with a prior-year acquisition. "Federated benefited from the breadth of investment choices it offers investors and a mix of revenue sources during the second quarter," said J. Christopher Donahue, president and chief executive officer. He added, "Fixed income flows were solid while investor interest in Federated's alternative equity mutual fund products highlighted the company's ability to provide investment options for a variety of market conditions." Shares of FII were bid markedly lower in the after-hours. Federated Investors, Inc., together with its consolidated subsidiaries, is a provider of investment management products and related financial services.