January 27, 2011

2010 Q4 Earnings: Janus Beats EPS, Revenue Estimates

Assets under management stood at $169.5 million and fourth-quarter long-term net outflows at $4.7 billion

Janus Capital Group reported fourth-quarter net income on Thursday of $65.9 million, or $0.36 per share, compared with net income of $37.0 million, or $0.20 per share, in the fourth quarter of 2009.

Revenue in the most-recent period were $275.7 million vs. $250.6 million in the year-ago period and $243.8 million in the third quarter for the mutual-fund company.

This performance beat analysts’ earnings estimates of $0.21 cents a share and revenues estimates of $262.7 million.

For the full-year 2010, net income totaled $159.9 million, or $0.88 per share, vs. a net loss of $757.1 million, or $4.55 per 2009. Revenues were $1.01 billion in 2010 compared with $848.7 million in 2009.

The company’s operating margin for the fourth quarter 2010 was 34.7% compared with 23.4% for the third quarter 2010 and 30.2% for the fourth quarter 2009.

Flows, AUM

Average assets under management during the fourth quarter 2010 were $167.3 billion compared with $155.2 billion during the third quarter of 2010 and $155.2 billion during the fourth quarter of 2009.

As of Dec. 31, 2010, the company’s total AUM were $169.5 billion compared with $160.8 billion in the third quarter at September 30, 2010 and $159.7 billion in the year-ago period.

“The increase in complex-wide assets during the fourth quarter 2010 reflects $13.5 billion of net market appreciation, partially offset by long-term net outflows of $4.7 billion,” the company said in a press release.

“Mathematical equity and fundamental equity (includes growth/blend, global/international and value investment disciplines) long-term net outflows totaled $2.6 billion and $2.7 billion, respectively, while fixed income long-term net inflows totaled $0.6 billion,” it explained.

Also, fourth-quarter flows were heavily influenced by a $2.6 billion fundamental-equity redemption by an institutional client, according to Janus.

The increase in year-over-year assets was primarily the result of $20.8 billion of net market appreciation and long-term net outflows of $10.8 billion, the company explains.

On Wednesday, Janus announced the appointment of Augustus Cheh, formerly CEO of AllianceBernstein in Hong Kong, as president of Janus Capital International, effective March 29. And, effective April 1, Hiroshi Yoh, previously CEO of Tokio Marine Asset Management of Singapore, will join the firm as portfolio manager of Asian equity strategies and, CEO of Janus Capital Singapore.

Read AdvisorOne's 2010 Q4 earnings calendar for the financial sector for release dates and links to earnings stories.

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