Q: Could I get your thoughts on FSZ latest quarter? Looks like the company is cutting cost and a nice beat on earnings this quarter.
5i Research Answer:
EPS of 24c beat estimates of 19c; revenue of $162.9M missed estimates of $166M. Revenue is still declining, 1.1%, despite big market gains this year. But assets under management did rise 1%. EBITDA rose 0.9% and did beat estimates. There is good leverage on earnings with cost control. Assets seem to have stabilized, which was a big concern earlier. The stock is very cheap and the yield is still 6.4%, despite the 50% dividend cut. Still, it is hard to get too excited here. It has been a harsh value trap in the past. EPS is expected to surge this year but then only rise about 5% in 2026. The quarter was an improvement but we would like to see some further consistency here.