This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Waddell & Reed Financial, Inc. Reports Fourth Quarter Results

Waddell & Reed Financial, Inc. (NYSE: WDR) today reported fourth quarter net income of $78.8 million, or $0.92 per diluted share, compared to net income of $68.4 million, or $0.80 per diluted share during the previous quarter and net income from continuing operations of $52.4 million, or $0.61 per diluted share during the fourth quarter of 2012.

Operating revenues of $375.0 million rose 8% sequentially and 24% compared to the same period last year. At 30.2%, the operating margin compares favorably to the previous quarter’s 29.8% and 27.5% during the fourth quarter of 2012. Continued margin expansion is the result of solid revenue growth and careful control of operating costs.

Assets under management were $127 billion at quarter-end, rising 11% since September 30 on a combination of strong market action and solid inflows across asset classes and distribution channels. Sequentially, sales rose 37% and net flows resulted in an organic growth rate of 14%. Compared to the end of last year, assets under management increased $30 billion, or 31%, of which $8.5 billion were new flows, representing organic growth of 9%.

Business Discussion

“Fourth quarter and full year results marked a number of new records for our firm,” said Hank Herrmann, Chairman and Chief Executive Officer of Waddell & Reed Financial, Inc. “Net income, earnings per diluted share, operating revenues and operating income set new highs in 2013. Sales and advisor productivity were at record levels while net flows were the second highest level ever. Such successes are a testament to our people, our business model, the strength and effectiveness of our distribution network, and a significant suite of products with strong performance records.”

The Wholesale channel captured $6.1 billion of new sales, an 18% increase compared to the previous quarter and a 71% improvement compared to the same period last year. Net flows of $2.8 billion represent an organic growth rate of 19%, significantly outpacing industry trends.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs