Here’s why the Janus Henderson share price just plunged 14%

The fund manager returned US$107 million through dividends and share buybacks in the first quarter.

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Key points

  • Janus Henderson share price plunges on underwhelming quarterly results 
  • Diluted earnings per share down 47% year-on-year 
  • Quarterly dividend boosted by 3% 

The Janus Henderson Group PLC (ASX: JHG) share price is falling hard today, down 14.1% in afternoon trading.

Shares in the global fund manager are under pressure following the release of its quarterly update for the 3 months ending 31 March after market close yesterday.

The company also trades on the New York Stock Exchange, where shares closed down 8.4% yesterday (overnight Aussie time).

What quarterly results were announced?

The Janus Henderson share price is in retreat after the company reported Q1 operating income of US$124.6 million. That was down 45% from the first quarter of 2021 and down 21% from the previous quarter.

Revenue declined from US$644 million in Q1 2021 to US$620 million in the quarter just past.

Meanwhile, diluted earnings per share of 47 US cents fell 47% from the 88 US cents reported in Q1 2021.

On the brighter side, the Board declared a 39 US cent per share dividend for the quarter, unfranked, an increase of 3%.

Janus Henderson reported it had completed US$43 million of share buybacks during the March quarter, with the Board approving US$200 million of buybacks through April 2023.

The sale of the fund manager’s Quantitative Equities subsidiary, Intech Investment Management, closed on 31 March.

Commenting on the results, Roger Thompson, Janus Henderson’s interim CEO said:

In an ongoing challenging market environment, which is impacting our outlook and flows, our first quarter results reflect solid long-term investment performance, robust financials, although down on the prior quarter, and continued capital return to shareholders. We returned US$107 million through dividends and share buybacks in the first quarter…

We are excited to have Ali Dibadj begin as CEO next month, and while we transition to a new CEO, we continue to make progress on delivering our strategic initiatives, including closing the sale of Intech.

Janus Henderson share price snapshot

With today’s intraday falls factored in, the Janus Henderson share price is down 36% in 2022. That compares to a year-to-date loss of 3% posted by the S&P/ASX 200 Index (ASX: XJO).

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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