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WisdomTree Investments (WETF) Q1 Earnings In Line

Have you been eager to see how WisdomTree Investments, Inc. WETF performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based exchange-traded fund (‘ETF’) and exchange-traded product (‘ETP’) sponsor and asset manager’s earnings release this morning:

Earnings Meets Expectations

WisdomTree came out with earnings per share of 9 cents, in line with the Zacks Consensus Estimate as well as prior year quarter earnings. Results reflected revenue growth and stable expenses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for WisdomTree Financial remained stable prior to the earnings release. The Zacks Consensus Estimate has remained unchanged at 9 cents over the last 7 days.

Revenue Came in Slightly Higher than Expected

WisdomTree posted revenues of $60.9 million, slightly above Zacks Consensus Estimate of $60 million. Moreover, revenues increased 1.2% year over year.

Key Takeaways:

Net Income came in at  $12.1 million, relatively stable with the prior-year quarter.

Total Expenses stood at $39.2 million, almost stable year over year.

As of Mar 31, 2016, U.S. listed ETF assets under management (AUM) was $44.3 billion, down 20.6% year over year, mainly driven by net outflows. However, the company witnessed significant growth in European listed AUM which totaled $885 million.

Jonathan Steinberg, WisdomTree CEO and President stated, "Against a backdrop of equity and currency market headwinds, our largest Japan and European based exposures experienced outflows in the first quarter, in line with market sentiment.  However, despite this difficult operating environment we achieved solid financial results underscoring the efficiency and durability of our business model. As a reflection of our financial strength, WisdomTree's Board approved a $60 million increase to our share repurchase program to a total amount of $100 million."

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) for WisdomTree. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

Check back later for our full write up on this WETF earnings report!

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