The GQG Partners Inc (ASX: GQG) share price has soared more than 50% in the last three months. After such a strong performance, what can investors actually expect in the FY23 result which is scheduled to be released soon?
GQG is a large fund manager that's based in the US and offers a number of different investment funds including global shares, US shares, international shares and emerging market shares. Some of its strategies are aimed at dividend stocks.
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What could the company report?
The business is expected to release its FY23 report on Friday, 16 February 2024.
Let's look at what we already know.
In the company's recent funds under management (FUM) announcement for December 2023, it said that it finished the period with US$120.6 billion of FUM.
For the three months to December 2023, it saw net inflows of US$1.8 billion, and for the full year to December 2023, it experienced net inflows of US$9.9 billion. On a full-year basis, it expects to be amongst the biggest and best-performing fund management businesses in net fund inflows terms for active equity managers both in Australia and the US.
GQG also revealed that it started 2024 with a "promising pipeline for potential new business."
Quite a few of its funds don't charge performance fees, which is why nearly all of GQG's revenue comes from management fees.
We also know the business has a stated dividend payout ratio of 90% of its distributable earnings, which means investors are likely to get a sizeable final dividend. 2024 is also shaping up to be a good year for owners of GQG shares.
FUM on 31 January 2024 was reported at US$127 billion, up 5.3% month over month, and this provides a strong tailwind for earnings in FY24.
Forecast
Goldman Sachs has estimated for FY23 that GQG may generate $505.4 million of total revenue (up 15.8%), pre-tax profit of $379.2 million (up 14.3%) and net profit after tax (NPAT) of US$274 million (up 15.2%).
Based on those numbers, GQG shares could be trading at 13 times FY23's projected earnings.
The broker has also pencilled a dividend per share of $8.82, up 13.6%.
GQG share price snapshot
Since the start of 2024, the GQG share price has climbed by 22%.
