Zacks Research Predicts Lower Earnings for Federated Hermes

Federated Hermes, Inc. (NYSE:FHI) – Stock analysts at Zacks Research decreased their Q3 2025 earnings per share (EPS) estimates for shares of Federated Hermes in a report released on Thursday, May 15th. Zacks Research analyst R. Department now anticipates that the company will post earnings of $0.99 per share for the quarter, down from their previous estimate of $1.03. The consensus estimate for Federated Hermes’ current full-year earnings is $4.04 per share. Zacks Research also issued estimates for Federated Hermes’ Q4 2025 earnings at $0.98 EPS, Q2 2026 earnings at $1.02 EPS, Q1 2027 earnings at $1.08 EPS and FY2027 earnings at $4.30 EPS.

Federated Hermes (NYSE:FHI) last posted its quarterly earnings data on Thursday, April 24th. The company reported $1.10 earnings per share for the quarter, beating analysts’ consensus estimates of $0.91 by $0.19. The business had revenue of $423.54 million for the quarter, compared to analysts’ expectations of $425.43 million. Federated Hermes had a net margin of 16.44% and a return on equity of 30.31%. The business’s revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.89 earnings per share.

A number of other research analysts have also recently commented on FHI. UBS Group upped their target price on Federated Hermes from $39.00 to $40.00 and gave the company a “neutral” rating in a research note on Monday, February 3rd. JPMorgan Chase & Co. reaffirmed an “underweight” rating and issued a $41.00 price objective (down previously from $42.00) on shares of Federated Hermes in a research report on Wednesday, February 5th. TD Cowen downgraded Federated Hermes from a “buy” rating to a “hold” rating in a research report on Wednesday, May 14th. Evercore ISI boosted their target price on shares of Federated Hermes from $38.00 to $41.00 and gave the company an “outperform” rating in a research note on Monday, April 28th. Finally, Royal Bank of Canada raised their price target on shares of Federated Hermes from $37.00 to $43.00 and gave the stock a “sector perform” rating in a research note on Wednesday, May 7th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Federated Hermes has an average rating of “Hold” and an average price target of $42.33.

Federated Hermes Stock Performance

Shares of NYSE:FHI opened at $42.92 on Monday. The company has a current ratio of 2.70, a quick ratio of 2.03 and a debt-to-equity ratio of 0.32. Federated Hermes has a 12 month low of $31.24 and a 12 month high of $43.92. The company has a market capitalization of $3.40 billion, a price-to-earnings ratio of 13.45, a PEG ratio of 1.00 and a beta of 0.77. The firm’s 50-day moving average is $39.76 and its 200 day moving average is $40.04.

Federated Hermes Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 15th. Stockholders of record on Thursday, May 8th were paid a dividend of $0.34 per share. The ex-dividend date was Thursday, May 8th. This represents a $1.36 annualized dividend and a dividend yield of 3.17%. This is a positive change from Federated Hermes’s previous quarterly dividend of $0.31. Federated Hermes’s dividend payout ratio (DPR) is currently 38.31%.

Institutional Trading of Federated Hermes

Several institutional investors and hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its holdings in shares of Federated Hermes by 3.1% in the 1st quarter. Vanguard Group Inc. now owns 8,760,811 shares of the company’s stock valued at $357,178,000 after purchasing an additional 265,590 shares in the last quarter. FMR LLC raised its stake in Federated Hermes by 4.5% in the fourth quarter. FMR LLC now owns 5,919,888 shares of the company’s stock worth $243,367,000 after buying an additional 253,553 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in Federated Hermes by 249.7% in the first quarter. Charles Schwab Investment Management Inc. now owns 3,199,554 shares of the company’s stock worth $130,446,000 after buying an additional 2,284,509 shares in the last quarter. Invesco Ltd. lifted its holdings in Federated Hermes by 6.2% during the first quarter. Invesco Ltd. now owns 2,367,754 shares of the company’s stock worth $96,533,000 after buying an additional 137,248 shares during the period. Finally, Fuller & Thaler Asset Management Inc. boosted its position in Federated Hermes by 0.9% during the 1st quarter. Fuller & Thaler Asset Management Inc. now owns 1,904,596 shares of the company’s stock valued at $77,650,000 after acquiring an additional 16,333 shares in the last quarter. 75.94% of the stock is currently owned by institutional investors.

Federated Hermes Company Profile

Federated Hermes, Inc is a publicly owned investment manager. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors.