The asset management company, Janus Henderson Group plc (ASX: JHG) reported first-quarter 2019 Diluted EPS of US$0.48, down from US$0.82 in the previous corresponding period. The bleak performance of the company pulled its stock down by 12.12% in a day-trade to close at $30.960 on 3 May 2019.
On the top-line front, Janus Henderson Group plc declared US$417.4 million adjusted revenue for first quarter 2019, down from the fourth quarter 2018 result of US$442.7 million. This reflects the decline in management fee margin given lower performance fees and outflows in higher fee equity products.
Net attributable income has been reported to US$94.1 million for the quarter ended 31 March 2019, compared to US$106.8 million in the previous quarter. Moreover, JHG’s adjusted net income stood at $ US$110.0 million declined 6% compared to US$117.5 million in December 2018 quarter, reflecting one-off costs relating to acquisition and other transactions.
Chief Executive Officer of Janus Henderson Group plc, Dick Weil, stated: “Despite the overall strong investment performance, the company continued to witness underperformance leading to substantial net outflows.”
On the bright side, the company finished the quarter with a 9% increase in Assets Under Management (AUM) to US$357.3 billion as at 31 March 2019. The group has achieved Strong investment performance, with 69% and 74% of assets under management (“AUM”) outperforming relevant benchmarks on a 3 and 5-year basis, respectively, as at the end of the quarter.
Mr Henderson added that the company is eyeing encouraging results in significant momentum in the US retail channel driven by its ongoing growth in its Multi-Asset capability, the company’s US Equity strategies and a better environment in Continental Europe.
The Board declared a first-quarter dividend of US$0.36 per share on 1 May 2019. The shareholders registered as on the record date of 13 May 2019 would be entitled to receive this dividend on 29 May 2019 with respect to the three months ended 31 March 2019.
To date, JHG has purchased ~1.3 million of its shares worth US$31 million on the NYSE and its CHESS Depositary Interests (CDIs) on the ASX as a part of its US$200 million on-market buyback programme, approved in February.
JHG’s Net Tangible Assets per share stood at 1.31 cents as at 31 March 2019, compared to 1.32 cents as at 31 December 2018. The company intends to publish its second quarter 2019 results on 31 July 2019.
JHG stock closed at a price to earnings multiple of 9.490x as at 3 May 2019. Over the past 12 months, the stock has declined by 16.38% despite a positive price change of 14.94% recorded in the past three months.
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