Overview

* Victory Capital ( VCTR ) Q3 revenue slightly missed analyst expectations

* Adjusted net income for Q3 missed analyst estimates

* Company repurchased 1.8 mln shares, returning $163 mln to shareholders

Outlook

* Victory Capital ( VCTR ) anticipates $110 mln in net expense synergies from Pioneer integration

Result Drivers

* PIONEER INTEGRATION - Integration of Pioneer Investments is on track to deliver $110 mln in net expense synergies

* ETF PRODUCT SUCCESS - Strong sales of diversified ETF products added $5.4 bln in positive net flows

* INVESTMENT PERFORMANCE - Firmwide investment performance remains excellent, with a high percentage of AUM outperforming benchmarks

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $361.20 $363.60

Revenue Miss* mln mln (5

Analysts

)

Q3 EPS $1.11

Q3 Miss $130.90 $133.06

Adjusted mln mln (4

Net Analysts

Income )

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 $71.00, about 12% above its November 5 closing price of $62.49

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

Press Release:

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(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.)