Janus Henderson Group PLC, strengthening its core foundation while maximising growth potential
Team Veye | 30 Sep 2020 ASX - JHG
Janus Henderson Group PLC (ASX: JHG)
Janus Henderson Group plc Reports Second Quarter 2020 Diluted EPS of US$0.55, or US$0.67 on an Adjusted Basis
Janus Henderson Group plc (NYSE/ASX: JHG; ‘JHG’, ‘the Group’) on 29 July 2020 published its second quarter 2020 results for the period ended 30 June 2020.
(Chart source: TradingView)
- Solid long-term investment performance, with 62% and 68% of assets under management (‘AUM’) outperforming relevant benchmarks on a three- and five-year basis, respectively, as at 30 June 2020
- AUM of US$336.7 billion was up 14% compared to the prior quarter, reflecting an improvement in global markets partially offset by net outflows of US$(8.2) billion
- Completed US$22 million of share buybacks during the second quarter
- Board declared a quarterly dividend of US$0.36 per share
Second quarter 2020 operating income was US$106.7 million compared to US$(332.4) million in the first quarter of 2020 and US$118.5 million in the second quarter of 2019. Adjusted operating income, adjusted for one-time, acquisition and transaction related costs, of US$138.4 million compared to US$164.5 million in the first quarter 2020 and US$152.0 million in the second quarter 2019.
(Graphic Source – Company Reports)
Second quarter 2020 diluted earnings per share were US$0.55 compared to US$(1.35) in the first quarter of 2020 and US$0.56 in the second quarter of 2019. Adjusted diluted earnings per share of US$0.67 increased by 12% compared to US$0.60 in the first quarter 2020 and increased by 10% versus US$0.61 in the second quarter of 2019. (Data Source – Company Reports)
Veye’s Take
Janus Henderson Group even in the face of the extraordinary challenges resulting from the global COVID 19 pandemic, delivered a strong financial performance in the second quarter. Its long-term investment performance remains solid. Net flows into its Intermediary channel rebounded strongly during the quarter with $900 million of positive net flows. The Company continues to have a strong global pipeline across a diverse set of clients and strategies, and it remains confident in its ability to convert those opportunities into net flows in the quarters to come. The stock, after forming a double bottom, has been moving steadily. The stock can perform well in the short to medium term. Veye had recommended a "Buy" on “Janus Henderson Group PLC” on 5 May 2020 at the price of $28.35. Veye maintains a "Buy" on “Janus Henderson Group PLC” at the current price of $29.93
Disclaimer
Veye Pty Ltd (ABN 58 623 120 865) authorised representative (AR No. 001261006) of Vested Equities Pty Ltd which holds an Australian Financial Services License (AFSL No. 478987). Veye is authorised to share only generic financial views through its website, reports and newsletters without taking into consideration your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure the accuracy of the content and that the information is gathered and processed from reliable resources, it is recommended you seek professional advice from your financial advisor or stockbroker before acting on any of our recommendations. Veye Pty Ltd advises it’s users to pursue investing as a long-term goal. Stocks are subject to real time changes therefore all the information we share represents our views at the date of publishing and we request our readers not to interpret our reports as direct recommendations. Past performance is no indication of potential future performance. The securities and financial products we study and share information on in Veye Reports may have a product disclosure statement or other offer document associated with them. You should obtain a copy of these documents before making any decision about acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Veye Pty Ltd confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report (as mentioned on the website www.veye.com.au).