Janus Capital Focuses on Innovative Offerings, Eyes Future Growth

Janus Capital Group (JNS) hired Bill Gross from PIMCO (Pacific Investment Management Company) in 2014 in a bid to expand its debt offerings and assets under management. The price of its stock has benefited greatly.

Janus didn’t perform as well as expected in the first half of 2015, and it was revalued accordingly by the market. However, it has focused on innovative offerings, especially in debt funds, in order to attract capital. Analysts expect 15% growth in earnings for the company in 2016 and an EPS (earnings per share) estimate of $1.05 on revenues of $1.1 billion.

Janus (JNS) reported 3Q15 adjusted net profits of $44.7 million, or $0.22 per diluted share, missing the Wall Street analyst estimate by $0.01. Nevertheless, the company’s revenues expanded by 15.5% to $274 million, reflecting lower negative performance fees. Its net profits, including a one-time charge related to early retirement of debt, stood at $19.9 million, o r$0.10 per diluted share.

Janus Capital’s average AUM (assets under management) stood at $192.1 billion in 3Q15. Last quarter, the average AUM totaled $193.0 billion. In the same quarter last year, the average AUM came in at $176.5 billion.

Janus Capital’s product offerings include US and global equities, mathematical equities, fixed income products, and alternatives. Its revenues totaled $953 million last fiscal year. Its peers posted the following results:

• BlackRock (BLK) – $11.1 billion
• T. Rowe Price Group (TROW) – $4 billion
• Bank of New York Mellon (BK) – $3.2 billion

Together, these companies form 0.9% of the iShares Russell 1000 Value ETF (IWD).