Waddell & Reed Financial Inc. reported a 9 percent increase in third-quarter earnings despite taking a $5 million after-tax charge.
The Overland Park-based money management company earned $74.6 million, or 89 cents per share, in July, August and September, compared with $68.4 million, or 80 cents per share, a year ago. The charge, its announcement said, was against the company’s intangible assets related to a subadvisory agreement to manage mutual funds.
Profits also rose despite an outflow of assets and a decline in stock values generally.
“Headwinds our company has endured these last few months have led to disappointing outflows and detracted from an otherwise solid quarter,” chief executive officer Hank Herrmann said in the announcement. “Our operating revenues rose and, by keeping expenses in check, our operating margin expanded after adjusting for the impairment charge.”
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Revenues in the quarter reached $409.6 million, compared with $347.1 million a year earlier. Assets under management fell 5 percent during the quarter and totaled $128.9 billion at the end of September.
Waddell & Reed stock closed down 1.7 percent Tuesday at $46.42, down 81 cents.