Manning & Napier (NYSE: MN) shares plummeted at a steady rate over the last five years; MN stock declined 30% last year and down 76% in the previous five years. MN stock trades around $3.85, slightly higher from the 52-week low of $2.95 per share. Its stock has the 52-week trading range of $2.95 – $6.00 – with the market capitalization of $58 million.
Manning & Napier is an independent investment management firm. The steady decline in its revenue, earnings, and assets under management (AUM) has been impacting its share price over the last five years.
Poor Financials and Declining AUM Impacts Stock Price For Manning & Napier
Although the management has been working on different strategies including custom solutions offerings and digital marketing to repel the negative market trends, its financial numbers aren’t yet started improving.
Its revenue declined from $397 million in 2014 to $210 million in fiscal 2017, while earnings also fell at a high double-digit rate to $3.52 per share last year.
The company recently announced lower than expected results for the fourth quarter and fiscal 2017. Its revenue of $201.5 million in fiscal 2017 declined 19% from 2016, due to the decline of 18% in average AUM. Albeit cost-cutting strategies, Manning & Napier posted a significant year on year operating earnings drop of 26% in FY2017.
Commenting on the results, Mr. Manning said, “Looking ahead to 2018, we will balance continued product development, further expansion of customized services and consultative offerings, and prudent management of our operating costs in a way that best positions our company for long-term success.”
>>Stein Mart Still Trading Higher
Despite an optimistic outlook from Mr. Manning, its asset under management has extended the downtrend into this year; plunging to $23.8 billion in February from $24.9 billion at the end of last month and $25.1 billion in the same period last year. The steady decline in assets under management poses a risk to its share price performance.
Featured Image: twitter
