Janus Announces $500 Million Stock Buyback After Beat - TheStreet

Janus Announces $500 Million Stock Buyback After Beat

Investors add to its mutual funds for the first time in six years.
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Janus Capital's (JNS) second-quarter earnings jumped 57% as clients added money to its mutual funds for the first time in several years.

The money manager also announced a new $500 million share buyback program.

The money manager earned a net $48.8 million, or 27 cents per diluted share, for the three months ended June 30, up from $31.1 million, or 15 cents per diluted share, in the year-ago period.

Analysts polled by Thomson Financial had anticipated earnings of 24 cents per share.

Janus' assets under management sat at $190.6 billion on June 30, up 8.2% on the quarter and 24.3% on the year. Investors added a net $2.8 billion to stock and long-term bond funds and $1.3 million into money market funds during the quarter. It was the first time the firm had attracted new money to the products it manages inhouse in six years. Market appreciation added another $10.3 billion to total assets.

The company said an improvement in its investment management operating margins to 34.6% from 24.6% a year earlier also boosted financial results.

Janus also repurchased 10.4 million shares of common stock during the quarter, reducing the number of shares outstanding by 4.8%. It paid an average price of $26.60 per share, for a total cost of $277 million.

The company says it plans to repurchase an additional $500 million of its stock once the current buyback plan is complete.

At the end of the quarter, around 82%, 77% and 67% of the funds in Janus' primary retail fund family -- Janus Investment Fund -- ranked in the top-half of Lipper's categories on a one-, three- and five-year total-return basis.