Schroders (LON:SDR) Issues Quarterly Earnings Results

Schroders (LON:SDR) announced its quarterly earnings data on Thursday. The company reported GBX 36.60 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Schroders had a return on equity of 8.65% and a net margin of 12.81%.

Here are the key takeaways from Schroders’ conference call:

• Schroders’ board unanimously recommends Nuveen’s all-cash offer of GBP 6.12 per share (GBP 5.90 cash + up to GBP 0.22 dividends), implying ~17x 2025 adjusted EPS and a ~34% premium to yesterday’s close, giving shareholders immediate cash certainty.
• Management says the combination creates a globally scaled asset manager with combined AUM > $1.8 trillion, complementary capabilities (Nuveen fixed income, Schroders public markets), retained London non‑US HQ, and commitments to preserve the Schroders brand and teams, which they believe accelerates growth materially.
• Schroders delivered a strong 2025 operational performance — operating profit +25%, EPS +29%, record AUM GBP 824bn (+6%), GBP 11.2bn net inflows and >70% of assets outperforming over 1/3/5 years — supporting the board’s valuation view.
• Management highlighted execution risks: Schroders Capital fundraising and conversion of fee‑earning dry powder (GBP 4.9bn) need to accelerate, joint‑venture outflows (~GBP 5bn, mainly China) and wealth net new business (2.7% run rate) lag targets, which could constrain organic growth.
• The transformation program is progressing — GBP 75m in-year savings (≈GBP 100m annualized), ~10% headcount reduction, supplier base down 12%, and cost‑to‑income improved to 71% with a target below 70% by 2027 — bolstering operating leverage.

Schroders Price Performance

Shares of SDR traded up GBX 130.50 on Thursday, hitting GBX 587.50. The company’s stock had a trading volume of 1,147,357,875 shares, compared to its average volume of 58,690,957. The company has a market capitalization of £9.11 billion, a PE ratio of 26.35, a PEG ratio of 1.28 and a beta of 1.17. Schroders has a fifty-two week low of GBX 283.40 and a fifty-two week high of GBX 599.50. The company has a 50 day moving average price of GBX 424.25 and a 200 day moving average price of GBX 398.47. The company has a debt-to-equity ratio of 12.95, a current ratio of 4.90 and a quick ratio of 4.32.

More Schroders News

Here are the key news stories impacting Schroders this week:

• Positive Sentiment: Report that Schroders has agreed a roughly $13.5bn sale to Nuveen, with the Schroder family selling its stake — a deal announcement typically carries a takeover premium that explains the sharp upward move in the stock. Article Title
• Positive Sentiment: Schroders released quarterly results showing GBX 36.60 EPS for the quarter with net margin ~12.8% and ROE ~8.65% — earnings publication supports fundamentals and makes a takeover valuation easier to justify. Press Release
• Positive Sentiment: Insider buys: small purchases by Meagen Burnett and Richard Oldfield at ~GBX 467 signal management/insider confidence ahead of and around the announcement window. Insider Trades
• Neutral Sentiment: Analyst activity is mixed but constructive: several Buy/Overweight re-affirmations and target changes (RBC, UBS, JPMorgan), though some targets were trimmed earlier — consensus is a Moderate Buy, which supports momentum but leaves room for valuation debate. Analyst Notes
• Neutral Sentiment: Market coverage (WSJ, Investors Chronicle) has flagged Schroders in overseas/M&A commentary, increasing investor attention and trading volume. WSJ Coverage Investors Chronicle
• Negative Sentiment: Deal risks: acquisition subject to shareholder/regulatory approvals, integration risk and possible competing bids — any setbacks could reverse gains. (Watch formal filings, timetable and regulator commentary.)

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the stock. Citigroup dropped their target price on shares of Schroders from GBX 435 to GBX 430 and set a “buy” rating on the stock in a research report on Friday, October 24th. Royal Bank Of Canada lifted their target price on Schroders from GBX 435 to GBX 440 and gave the stock a “buy” rating in a research report on Thursday, October 30th. JPMorgan Chase & Co. reaffirmed an “overweight” rating on shares of Schroders in a report on Friday, January 9th. Jefferies Financial Group restated a “hold” rating and set a GBX 420 price objective on shares of Schroders in a research report on Friday, January 9th. Finally, UBS Group restated a “buy” rating and issued a GBX 455 target price on shares of Schroders in a research note on Friday, October 17th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 413.86.

Schroders Company Profile

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe.