Janus Henderson Faces Revenue Decline Despite Asset Growth as Markets Remain Challenging
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Janus Henderson's AUM increased 7.5% year-over-year to $322.1 billion in June 2023, driven by significant institutional inflows in Q1.
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The firm expects several quarters of net inflows over the next 1-2 years, but revenue is likely to decline 5-10% in 2023 due to market challenges.
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Operating margins declined 410-490 basis points in H1 2023 reflecting negative operating leverage, and are expected to remain below peer levels through 2027.
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The firm continues to face headwinds like the potential for another market correction that could hurt AUM and revenue growth.
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Morningstar has a fair value estimate of $26 per share for Janus Henderson, viewing shares as modestly undervalued.