Overview

* Victory Capital ( VCTR ) Q2 revenue rises 59.9% yr/yr, beating analyst expectations

* Adjusted net income with tax benefit per share rises, beating estimates

* Co increases share repurchase authorization to $500 mln

Outlook

* Company investing in non-US sales efforts and intermediary sales expansion

* Victory Capital ( VCTR ) anticipates continued strong investment performance

Result Drivers

* ACQUISITION IMPACT - Acquisition of Amundi US and Pioneer Investments increased AUM, boosting revenue

* EXPENSE SYNERGIES - Achieved $70 mln of expected $110 mln in net expense synergies from acquisition

* NET OUTFLOWS - Despite net outflows, market appreciation and acquired assets increased AUM

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $351.20 $336.80

Revenue mln mln (6

Analysts

)

Q2 EPS $0.68

Q2 Beat $122.50 $119.50

Adjusted mln mln (5

Net Analysts

Income )

Q2 Net $58.70

Income mln

Q2 Beat $178.50 $163 mln

Adjusted mln (5

EBITDA Analysts

)

Q2 50.8%

Adjusted

EBITDA

Margin

Q2 26.8%

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the investment management & fund operators peer group is "buy"

* Wall Street's median 12-month price target for Victory Capital Holdings Inc ( VCTR ) is $68.00, about 1.7% below its August 6 closing price of $69.19

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)