Q: Your thoughts please on the quarter?
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5i Research Answer:
EPS of 25c beat estimates of 20c; revenue of $171.7M beat estimates of $165.1M. Revenue rose 8.2%. EPS rose 39%. Assets rose 6.6% to $165.5B. EBITDA rose 18% to $51.7M. This is the best quarter we have seen from the company in some time. It has of course seen the benefit from much stronger capital markets. Certainly it has leverage here if markets continue to be strong. It got $900M in new mandates, so it is not just the market. Still, private wealth and institutional are still seeing some redemptions. It got one broker upgrade, and the stock is now up 79% for the year. Market risk remains, and one quarter or two is not a trend, but certainly this was a bright spot for the company after multiple years of ho-hum performance.