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01/11 14:01
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with increased revenues and AUM, successful ETF launches, and strategic initiatives like a joint venture partnership. Despite some outflows and market uncertainty, the company has a robust pipeline and a solid balance sheet. The Q&A indicates management's confidence in their initiatives and seed capital opportunities. The dividend and share repurchase program further support shareholder returns. These factors, combined with the positive sentiment from analysts, suggest a positive stock price movement over the next two weeks.
Total Revenues $23.7 million for Q3 2024, up from $21.9 million in Q3 2023 (8.2% increase) due to higher average assets under management.
Comprehensive Income $0.1 million or $0.01 per share for Q3 2024, down from $3.4 million or $0.41 per share in Q3 2023 due to higher employee compensation and benefits expense and changes in the fair value of contingent consideration.
Non-GAAP Economic Earnings $1.1 million or $0.13 per share for Q3 2024, down from $6.5 million or $0.80 per share in Q3 2023 due to higher employee compensation and benefits expense.
Assets Under Management $17.7 billion at quarter end, up from $16.8 billion in the previous quarter and $16.1 billion in Q3 2023, with market appreciation of $1.1 billion and net outflows of $0.1 billion.
Cash and Short-term Investments $48.3 million at quarter end, indicating a solid financial position with a debt-free balance sheet.
Dividend Regular cash dividend of $0.15 per common share announced, payable on January 3, 2025.
New Energy ETFs: Successful launch and growth of two energy ETFs with MDST crossing $50 million in AUM, passing a critical trading volume threshold.
Managed Investment Solutions: We aim to secure our first client in the coming months after completing Phase 1 of the Managed Investment Solutions technology build.
Joint Venture Partnership: Formed a joint venture partnership, Westwood Engineered Beta, to expand our ETF platform with innovative defined volatility ETFs.
Institutional Channel: Institutional channel delivered net inflows of $197 million, with a current pipeline of nearly $2 billion.
Wealth Management Division: We had net outflows of $44 million, but on-boarded a new $10 million plus relationship.
Share Repurchase Program: Returned approximately $273,000 to shareholders by buying back 21,879 shares.
Assets Under Management: Total assets under management reached $17.7 billion, up 5% from the prior quarter.
Leadership Change: Leah Bennett will step down as President of Westwood Wealth Management, with Brian Casey reassuming executive responsibility.
Focus on High-Quality Businesses: We believe our focus on high-quality businesses with strong free cash flows positions us well for the future.
Market Uncertainty: Continued uncertainty driven by political concerns, both domestically and abroad, may impact business operations and investment strategies.
Outflows in Wealth Management: Net outflows of $44 million in the wealth management division indicate challenges in retaining assets, despite onboarding new relationships.
Institutional Outflows: Quarterly net outflows of $325 million in the intermediary channel highlight competitive pressures and potential loss of client confidence.
Economic Factors: The Fed's interest rate cuts and changes in treasury yields may affect investment strategies and overall market performance.
Leadership Transition: The upcoming leadership change in the Wealth Management division could pose risks related to continuity and client service.
ETF Market Competition: The competitive landscape in the ETF market requires significant investment and innovation to capture market share.
Dependence on New Initiatives: The success of new initiatives, such as Managed Investment Solutions and the ETF platform, is critical for future growth and may face execution risks.
Total Assets Under Management: Reached $17.7 billion, up 5% from the prior quarter, marking the highest level in six years.
Share Repurchase Program: Returned approximately $273,000 to shareholders by buying back 21,879 shares.
Joint Venture Partnership: Formed Westwood Engineered Beta (WEBs) to expand the platform with innovative defined volatility ETFs.
Managed Investment Solutions (MIS): Completed Phase 1 of technology build and conducting discovery meetings with plan sponsors to secure first client.
Energy ETFs: Successful launch and growth of two energy ETFs, with MDST crossing $50 million in AUM.
Revenue Expectations: Expect continued uncertainty driven by political concerns but believe focus on high-quality businesses positions well for the future.
Pipeline: Current pipeline has increased to nearly $2 billion, with strong institutional gross flows over $1 billion year-to-date.
Future Initiatives: Considering timing for future initiatives in the market.
ETF Growth: Expect momentum to continue propelling AUM higher over the coming quarters.
Energy Market Outlook: Well positioned to ride the likelihood of a multiyear tailwind in the energy space.
Regular Cash Dividend: $0.15 per common share payable on January 3, 2025 to stockholders of record on December 2, 2024.
Share Repurchase Program: Returned approximately $273,000 to shareholders by buying back 21,879 shares.
The earnings call presents mixed signals: positive elements include increased revenues, net income, and non-GAAP earnings, alongside new product launches and strategic market positioning. However, concerns such as institutional net outflows, market concentration risks, and economic uncertainties temper the outlook. The dividend announcement is neutral, lacking any increase. The Q&A indicates no major concerns but doesn't significantly alter sentiment. Overall, the balance of positive financial performance with strategic and market risks suggests a neutral stock price movement.
The earnings call reveals mixed signals. Financial performance shows a decline in net income and revenues, but the company achieved non-GAAP economic earnings and maintained a strong asset base. Market strategy highlights growth in SMID cap products and potential exponential growth in certain platforms, but market uncertainty and competitive pressures pose risks. The regular cash dividend is positive, but lack of share repurchase is neutral. Overall, the financial and strategic outlook is balanced by risks and uncertainties, leading to a neutral stock price prediction.
The earnings call highlights several concerns: declining revenues and net income, market uncertainties, competitive pressures, and regulatory issues. Although there are some positive elements, like a regular cash dividend and potential growth in certain areas, the overall financial performance is weak. The Q&A section reveals management's unclear responses and lack of specific strategies, which adds to the negative sentiment. The combination of these factors, along with the absence of a share repurchase program, suggests a negative stock price movement in the short term.
The earnings call highlights strong financial performance with increased revenues and AUM, successful ETF launches, and strategic initiatives like a joint venture partnership. Despite some outflows and market uncertainty, the company has a robust pipeline and a solid balance sheet. The Q&A indicates management's confidence in their initiatives and seed capital opportunities. The dividend and share repurchase program further support shareholder returns. These factors, combined with the positive sentiment from analysts, suggest a positive stock price movement over the next two weeks.
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