Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Voya Financial (NYSE: VOYA) and its peers.
Custody banks safeguard financial assets and provide services like settlement, accounting, and regulatory compliance for institutional investors. Growth opportunities stem from increasing global assets under custody, demand for data analytics, and blockchain technology adoption for settlement efficiency. Challenges include fee pressure from large clients, substantial technology investment requirements, and competition from both traditional players and fintech firms entering the space.
The 16 custody bank stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.2%.
In light of this news, share prices of the companies have held steady as they are up 2.3% on average since the latest earnings results.
Voya Financial (NYSE: VOYA)
Originally spun off from Dutch financial giant ING in 2013 and rebranded with a name suggesting "voyage," Voya Financial (NYSE: VOYA) provides workplace benefits and savings solutions to U.S. employers, helping their employees achieve better financial outcomes through retirement plans and insurance products.
Voya Financial reported revenues of $1.94 billion, up 4% year on year. This print exceeded analysts’ expectations by 13%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Voya Financial achieved the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 3.5% since reporting and currently trades at $71.05.
Is now the time to buy Voya Financial? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: Hamilton Lane (NASDAQ: HLNE)
With over $100 billion in assets under management and supervision, Hamilton Lane (NASDAQ: HLNE) is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors.
Hamilton Lane reported revenues of $190.9 million, up 27.3% year on year, outperforming analysts’ expectations by 12.8%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
The market seems happy with the results as the stock is up 13.1% since reporting. It currently trades at $130.
Is now the time to buy Hamilton Lane? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: P10 (NYSE: PX)
Operating as a bridge between institutional investors and hard-to-access private market opportunities, P10 (NYSE: PX) is an alternative asset management firm that provides access to private equity, venture capital, impact investing, and private credit opportunities in the middle and lower middle markets.
P10 reported revenues of $75.93 million, up 2.3% year on year, falling short of analysts’ expectations by 4.5%. It was a slower quarter as it posted a significant miss of analysts’ EBITDA and management fees estimates.
P10 delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.5% since the results and currently trades at $10.42.
Read our full analysis of P10’s results here.
Northern Trust (NASDAQ: NTRS)
Founded in 1889 during Chicago's post-Great Fire rebuilding boom, Northern Trust (NASDAQ: NTRS) provides wealth management, asset servicing, and banking solutions to corporations, institutions, families, and high-net-worth individuals globally.
Northern Trust reported revenues of $2.03 billion, up 2.9% year on year. This print was in line with analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged a solid beat of analysts’ AUM estimates but a slight miss of analysts’ advisory and servicing fees estimates.
The stock is up 1.2% since reporting and currently trades at $130.09.
Read our full, actionable report on Northern Trust here, it’s free for active Edge members.
WisdomTree (NYSE: WT)
Originally founded as a financial media company before pivoting to ETF management in 2006, WisdomTree (NYSE: WT) is a financial services company that creates and manages exchange-traded funds (ETFs) and other investment products for individual and institutional investors.
WisdomTree reported revenues of $125.6 million, up 11% year on year. This result beat analysts’ expectations by 2.2%. It was a very strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ yield estimates.
The stock is flat since reporting and currently trades at $11.49.
Read our full, actionable report on WisdomTree here, it’s free for active Edge members.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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