VCTR Earnings Prediction
The chart below shows how VCTR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VCTR sees a +0.96% change in stock price 10 days leading up to the earnings, and a +6.09% change 10 days following the report. On the earnings day itself, the stock moves by -0.78%. This data can give you a slight idea of what to expect for the next quarter's release.
VCTR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
225.63M
5.04%
2.74%
Gross Margin
--
--
--
Operating Margin
48.24%
8.09%
-0.12%
Net Margin
36.34%
50.10%
7.48%
EPS
1.24
61.04%
10.71%
No Data Available
VCTR Earnings Analysis
Victory Capital Holdings, Inc. Class A Common Stock Corporation (VCTR.O) Earnings Conference Call
Positive
Record Earnings Achievement: 1. Record Earnings Per Share: Victory Capital achieved a record high earnings per share of $1.24 on a GAAP basis and $1.35 on an adjusted basis, marking significant growth from the previous year.
Quarterly Revenue Increase: 2. Strong Revenue Growth: The company reported a 3% increase in revenue, reaching $225.6 million in the third quarter, compared to $219.6 million in the second quarter.
Client Asset Growth: 3. Increased Client Assets: Total client assets rose by over 4%, amounting to $181.1 billion at the end of September, which is the second highest level in the company's history.
Cash Position Improvement: 4. Improved Cash Position: Victory Capital ended the quarter with $188 million in cash, an increase of $69 million from the previous quarter, enhancing its financial flexibility.
Dividend Increase Announcement: 5. Dividend Increase: The Board authorized a 7% increase in the quarterly dividend, raising it to $0.44 per share, reflecting the company's commitment to returning capital to shareholders.
Negative
Fee Rate Decline: 1. Declining Fee Rate: The average fee rate decreased by 0.5 basis points from the second quarter to 52.1 basis points, attributed to product, asset class, and channel mix shifts.
Share Repurchase Prohibition: 2. Prohibition on Share Repurchases: The company was prohibited from repurchasing shares during the quarter due to the proxy process, which contributed to a cash buildup of $69 million, raising the total cash balance to $188 million.
Net Flows Pressure: 3. Pressure on Net Flows: Net flows in July and August were pressured by portfolio rebalancing activity, indicating challenges in maintaining client investments during that period.
Revenue Realization Decline: 4. Lower Revenue Realization: Revenue realization was reported at 52.1 basis points, which reflects a decrease compared to previous periods, indicating potential challenges in revenue generation.
Operating Expenses Challenges: 5. Increased Operating Expenses: Despite a decline in total expenses by 5%, the company still faced challenges with compensation expenses, which were impacted by reversals of non-cash earnout related compensation accruals.
VCTR FAQs
How does VCTR typically perform around its earnings report dates?
Is Victory Capital Holdings, Inc. (VCTR) Q3 2024 Earnings Call Summary positive or negative?
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VCTR Earning Call Sentiment
Victory Capital Holdings, Inc. (VCTR) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
VCTR.O
-1.93%Positive
The earnings call summary indicates strong financial performance with record high EPS and EBITDA margins, improved cash balance, and a dividend increase. The strategic partnership with Amundi and the focus on acquisitions and product expansion further enhance growth prospects. Despite some concerns about fixed income flows, management remains optimistic. The Q&A section reveals confidence in future consolidation and readiness for acquisitions, though some responses were vague. Given the market cap, the stock is likely to experience a positive movement in the range of 2% to 8% over the next two weeks.
