WisdomTree, Inc. reports results for the quarter ended September 30 - Earnings Summary

What happened

WisdomTree reported adjusted earnings of 32 cents per share for the quarter ended September 30, above the 23 cents reported a year earlier and above the 30 cents analysts expected on average. Revenue rose 42.8% to $179.38 million, while quarterly net income was $49.22 million.

Confirmed

Global impact / market context

Higher earnings and revenue suggest WisdomTree is collecting more money from its funds and keeping more profit per sale, which can support the share price over time. The revenue result still fell just short of the $179.54 million analysts expected, a small miss.

Analyst inference

The shares had fallen 11.3% this quarter but gained 76.8% so far this year. Analysts rate the stock a buy on average, with a median 12-month price target of $26.00, about 17.1% above the last close of $21.55.

Analyst inference

What to watch

1. Three analysts revised earnings estimates lower in the last 30 days, while the mean estimate rose about 0.5% over three months, which means the average moved even though some analysts cut their numbers. Confirmed
2. Watch whether WisdomTree can turn its strong revenue growth into profit that meets or beats expectations, since revenue narrowly missed the $179.54 million consensus and estimate cuts can pressure the shares. Analyst inference
3. Investors could compare future quarterly revenue and earnings with analyst expectations, and track whether the share price moves toward the $26.00 median target, as a signal of how the business is performing. Proposed

Evidence

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