Fri, Jul 26, 8:21 PM (43 days ago)
Federated Hermes, Inc. reported a decline in quarterly revenue to $402.6 million for Q2 2024, down from $433.2 million in Q2 2023, primarily due to reduced carried interest and lower equity revenue. Operating expenses increased by $27.0 million, largely driven by a $66.3 million impairment of an indefinite-lived intangible asset. Net income attributable to Federated Hermes dropped significantly to $21.0 million from $72.2 million in the same period last year. The effective tax rate spiked to 54.9% from 27.4%, influenced by a valuation allowance on foreign deferred tax assets. Average managed assets rose by 11%, with notable growth in money market assets. The company remains liquid with $540.4 million in liquid assets and maintains compliance with its financial covenants. Future cash needs are expected to be met through existing resources and borrowing capacity.