Schroders (LON:SDR) Posts Earnings Results

Schroders (LON:SDR) announced its earnings results on Thursday. The company reported GBX 36.60 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

LON SDR opened at GBX 587.16 on Friday. The company has a quick ratio of 4.32, a current ratio of 4.90 and a debt-to-equity ratio of 12.95. The stock has a market capitalization of £9.10 billion, a PE ratio of 26.33, a price-to-earnings-growth ratio of 1.28 and a beta of 1.17. Schroders has a 12-month low of GBX 283.40 and a 12-month high of GBX 599.50. The company has a 50 day moving average price of GBX 432.17 and a two-hundred day moving average price of GBX 401.11.

Analyst Ratings Changes

SDR has been the subject of several research analyst reports. Royal Bank Of Canada upped their price objective on Schroders from GBX 435 to GBX 440 and gave the company a “buy” rating in a report on Thursday, October 30th. Citigroup cut their target price on shares of Schroders from GBX 435 to GBX 430 and set a “buy” rating on the stock in a research note on Friday, October 24th. Jefferies Financial Group reaffirmed a “hold” rating and issued a GBX 420 target price on shares of Schroders in a research report on Friday, January 9th. UBS Group reiterated a “buy” rating and set a GBX 455 price target on shares of Schroders in a report on Friday, October 17th. Finally, JPMorgan Chase & Co. reissued an “overweight” rating on shares of Schroders in a research report on Friday, January 9th. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of GBX 413.86.

Key Headlines Impacting Schroders

Here are the key news stories impacting Schroders this week:

• Positive Sentiment: Nuveen/TIAA agreed to buy Schroders for about $14bn, delivering a takeover premium that materially revalues the company and underpins the recent rally. MarketWatch: Nuveen to buy Schroders
• Positive Sentiment: Schroders reported a strong set of results (profits up ~21%) at the time the takeover was announced, which supports the rationale and valuation for an acquirer. That earnings strength makes the deal look more attractive and credible. Investors Chronicle: Profits surge
• Neutral Sentiment: Analysts and the market are repositioning: Reuters flags the Schroders sale as a catalyst that puts other European asset managers in play, which may spur sector M&A speculation and re-rating across peers. Reuters: Sale puts peers in play
• Neutral Sentiment: Company quarterly results: Schroders reported GBX 36.60 EPS and solid margins/ROE — supportive fundamentals but now secondary to the takeover dynamics. Press release: Quarterly results
• Neutral Sentiment: Small insider purchases (Meagen Burnett, Richard Oldfield) have been reported — modestly bullish as a signal of insider confidence but too small to move fundamentals. InsiderTrades: Insider buying
• Negative Sentiment: Some investors may react negatively to the end of Schroders’ long-standing independence and family involvement (family reportedly sells out), creating uncertainty around culture, client retention and integration risks under new ownership. MSN: Family sells out / FTSE coverage

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.