HENNESSY ADVISORS INC (HNNA)·Q4 2024 Earnings Summary

Executive Summary

• Hennessy Advisors reported strong FY 2024 results (year ended Sep 30): revenue $29.6M (+23% YoY), net income $7.1M (+49% YoY), and diluted EPS $0.92 (+46% YoY), driven by higher average AUM ($3.7B, +23%) and year-end AUM of $4.6B (+53%) .
• Growth drivers included $549M in net new AUM, $72M of acquired AUM, and nearly $1B of market appreciation over the 12 months, underscoring both organic momentum and favorable markets .
• The Board maintained the quarterly dividend at $0.1375/share (paid Nov 27, 2024) as management emphasized dividend consistency and cash flow support; dividend had also been declared at the same rate in prior quarters .
• Corporate update: The Hennessy Stance ESG ETF (STNC) transferred its listing to Nasdaq effective Dec 18, 2024, to lower annual listing expenses, a modest tailwind to cost structure for the product .
• Note: The company furnished FY results via 8‑K Item 2.02/press release without a separate Q4 breakout; no Street consensus was available via S&P Global for Q4/FY comparisons at time of analysis . S&P Global consensus estimates were unavailable.

What Went Well and What Went Wrong

What Went Well

• Material EPS and profit acceleration: FY diluted EPS rose 46% to $0.92 and net income increased 49%, reflecting operating leverage on higher AUM .
• Strong asset momentum: Average AUM rose 23% YoY to $3.7B; year-end AUM reached $4.6B (+53% YoY), supported by $549M net inflows, $72M acquired assets, and nearly $1B market appreciation .
• Capital returns stability: Dividend maintained at $0.1375/share with management highlighting a two-decade record of consistent dividends and support from earnings and cash flow .

Selected quotes:

• “We successfully executed on all three fronts of our long-standing business strategy… purchased assets related to the management of $72 million… welcomed $549 million in net new assets… benefited from nearly $1 billion in market appreciation” — Teresa Nilsen, President & COO .
• “Our focus remains on navigating any economic environment to deliver long‑term value for our shareholders” — Neil Hennessy, Chairman & CEO .

What Went Wrong

• No granular Q4 disclosure: FY press release did not provide a standalone Q4 revenue/EPS breakout, limiting intra-year margin diagnostics for the quarter under review .
• No formal quantitative guidance: Management provided macro commentary but no explicit FY25 guidance ranges for revenue/margins/expenses/tax .
• Macro dependency acknowledged: Management emphasized that results are influenced by market conditions and macro factors (inflation, rates, geopolitics), underscoring inherent earnings sensitivity to asset levels .

Financial Results

Note: The company reported FY results for the period ended Sep 30, 2024, and provided quarterly detail for Q2 and Q3; Q4 was not separately broken out.

Fiscal Year Results

Quarterly Results (YoY Comparisons)

Q2 (quarter ended Mar 31):

Q3 (quarter ended Jun 30):

Estimates comparison: S&P Global consensus for Q4/FY was unavailable; no beat/miss assessment can be made.

KPIs

Segment breakdown: Not applicable; company reports as a single investment management platform .

Guidance Changes

Earnings Call Themes & Trends

Note: No earnings call transcript was available; themes are synthesized from company press releases.

Management Commentary

• Strategic execution: “We successfully executed on all three fronts of our long-standing business strategy… purchased assets related to the management of $72 million… welcomed $549 million in net new assets… benefited from nearly $1 billion in market appreciation” — Teresa Nilsen, President & COO .
• AUM-led operating leverage: “The effective execution of our business model drove a 23% increase in our average assets under management… creating a strong start to fiscal year 2025 with total assets under management up more than 50% since September 30, 2023” — Teresa Nilsen .
• Macro stance: “Many economic fundamentals are strong… Unemployment is low and stable, corporate earnings and cash flows are robust… With positive consumer sentiment, I see spending driving corporate profits… spur the stock market’s continued growth” — Neil Hennessy, Chairman & CEO .

Q&A Highlights

• No earnings call transcript was available; no Q&A themes to report. Management’s qualitative detail is drawn from the FY press release and prior quarterly press releases .

Estimates Context

• S&P Global consensus estimates for Q4 2024 and FY 2024 were not available at the time of analysis. As a result, we cannot assess beats/misses versus Street for revenue or EPS.

Key Takeaways for Investors

• The earnings algorithm remains AUM-driven: FY revenue +23% and EPS +46% on the back of +23% average AUM and +53% year-end AUM; sustained net inflows and acquisitions provide non-market growth drivers .
• Organic momentum is real: $549M FY net inflows, alongside $72M acquired assets, suggest distribution/product resonance beyond market beta .
• Dividend durability: Consistent $0.1375 quarterly dividend reiterated, backed by cash generation; useful for income-focused holders during market volatility .
• Near-term catalysts: Elevated starting AUM entering FY25 (“up more than 50% since 9/30/23”) could support further EPS expansion if markets remain constructive .
• Cost-conscious product move: STNC ETF’s transfer to Nasdaq to lower annual listing expense signals ongoing focus on operating efficiency at the product level .
• Monitoring items: Absence of formal guidance and quarter-specific Q4 metrics limits precision in near-term modeling; focus on monthly/quarterly AUM updates, net flow cadence, and any further acquisition activity .
• Trendline: Q2 and Q3 showed accelerating YoY EPS; FY metrics confirm continued leverage — if inflows persist and markets hold, earnings trajectory remains favorable into FY25 .