WisdomTree Q2 adjusted EPS beats on Atlantic House acquisition; AUM hits record
WT•Key reported metrics
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Adjusted EPS | Beat | $0.31 | $0.26 (7 Analysts) |
| Q2 EPS | $0.28 | ||
| Q2 Adjusted Gross Margin | 82.90% | ||
| Q2 Adjusted Operating Income Margin | 42.60% | ||
| Q2 Operating Income Margin | 40.50% |
Drivers of the quarter
WisdomTree said higher AUM and revenues were partly driven by the acquisition of Atlantic House.
Net inflows were $3.1 billion, mainly into commodity, international developed equity and U.S. equity products, partly offset by outflows from leveraged and inverse products.
Operating margin improvement was driven by higher revenues, lower acquisition-related costs, and seasonally elevated compensation expense in the prior period, partly offset by higher intangible amortization from the Atlantic House acquisition.
Outlook and analyst view
The company did not provide specific guidance for the current quarter or full year.
The current average analyst rating on the shares is buy, with 6 strong buy or buy ratings, 2 hold ratings and no sell or ratings. The median 12-month price target is , about above the July 30 closing price of . The stock recently traded at next 12-month earnings, versus three months ago.
