Market Commentary and Intraday News

WisdomTree Investments' net income falls 81 pct

326 days ago

The Associated Press
Associated Press

(AP:NEW YORK) WisdomTree Investments' net income plunged 81 percent as it took a large one-time charge in the second quarter, the money manager said Friday.

The New York-based firm, which manages exchange-traded funds or ETFs, reported net income of $129,000 in the three months ended in June, compared with $689,000 in the same period a year ago. A big hit came from $3.2 million in costs related to shareholder proxy fees.

On a per share basis, WisdomTree broke even compared with profit of a penny per share the year before. Excluding one-time charges, WisdomTree Inc. reported earnings of $3.1 million, up from $813,000 in the prior-year period.

WisdomTree's revenue rose 22 percent to $20.4 million as it booked more advisory fees.

Analysts had predicted that WisdomTree would post earnings of 2 cents per share and revenue of $21.2 million.

ETF assets under management slipped to $15.0 billion at June 30, from $15.7 billion at March 31 as markets dropped. But gross margin, which measures profitability, improved to 67 percent from 57 percent in the year-ago period due to a change in the mix of assets under management.

WisdomTree's stock rose 2 percent, or 15 cents, to close Friday at $6.59. The broad market Standard & Poor's 500 index surged 1.7 percent.

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