Earnings fall 18.7 percent at Waddell and Reed

Customer withdrawals reduced revenues 1.7 percent and earnings 18.7 percent at Waddell and Reed Financial in the second quarter.

The Overland Park-based mutual fund company said it earned $67.4 million, or 80 cents a share, during April, May and June. A year ago, it earned $83 million, or 98 cents a share, in the quarter.

Two fund categories — asset strategy and high income — contributed most to a $1.1 billion net outflow of money from accounts during the quarter, the company said. The exit rate was better than the $3.6 billion net outflows Waddell and Reed saw in the first three months of the year.

Assets managed by the company ended June at $121 billion, down 11 percent from a year ago.

Revenues totaled $394 million in the second quarter, down 1.7 percent from a year ago, according to the earnings report.

Shares of Waddell and Reed climbed 1.1 percent, gaining 49 cents and closing Tuesday at $43.84 after the earnings report.

This story was originally published July 28, 2015 at 9:54 AM with the headline "Earnings fall 18.7 percent at Waddell and Reed."