Hennessy Advisors reports 136% net income surge in first quarter

NOVATO, Calif. - Hennessy Advisors, Inc. (NASDAQ:HNNA), a financial services firm with a "GOOD" financial health rating according to InvestingPro, has announced a significant increase in its financial results for the first fiscal quarter ended December 31, 2024. The investment management firm reported a net income rise of 136% to $2.8 million, with total revenue jumping 58% to $9.7 million compared to the same quarter of the previous year. Earnings per share also saw a substantial increase, climbing 125% to $0.36, contributing to the company’s impressive 23.4% revenue growth over the last twelve months.

The company, which manages a range of domestic equity and multi-asset funds, highlighted the strong performance of all 17 Hennessy Funds, with each posting positive returns for the year ended December 31, 2024. This success extended to longer-term results, with all funds showing positive returns over three-year, five-year, and ten-year periods for those with a sufficient operating history. The company’s stock has reflected this strong performance, delivering a remarkable 97.5% return over the past year.

Average assets under management, a key revenue driver for the firm, grew by nearly 59% to $4.8 billion. The total assets under management followed suit, marking a 46% increase to the same amount. Hennessy Advisors also improved its cash position net of debt by about 28%, reaching $24.7 million.

In addition to the robust financial results, Hennessy Advisors declared a quarterly dividend of $0.1375 per share, which corresponds to an annualized yield of 4.6% based on the February 12, 2025, closing stock price of $12.00. Notably, the company has maintained dividend payments for 20 consecutive years, demonstrating strong commitment to shareholder returns. Shareholders on record as of February 24, 2025, will receive the dividend on March 6, 2025. InvestingPro analysis suggests the stock is currently slightly undervalued, trading at an attractive P/E ratio of 13.2.

The company’s leadership expressed confidence in the continued positive momentum of the market, attributing it to strong consumer spending, robust corporate profits, and mild inflation. Despite potential volatility, they remain optimistic about sustaining growth and creating economic opportunities. With a strong current ratio of 13.8, the company maintains ample liquidity to support its growth initiatives. For deeper insights into Hennessy Advisors’ financial health and additional ProTips, visit InvestingPro.

This news is based on a press release statement from Hennessy Advisors, Inc. The information provided is a reflection of the company’s performance and strategic outcomes for the reported period.

In other recent news, Hennessy Advisors Inc., a renowned investment advisory firm, has reported a significant shift in its independent registered public accounting firm. The company’s Audit Committee has approved CBIZ (NYSE:CBZ) CPAs P.C. as their new auditor for the fiscal year ending September 30, 2025, following Marcum LLP’s decision not to stand for reelection. The financial statements for the fiscal years ending September 30, 2024, and 2023, audited by Marcum, did not contain any adverse opinion or disclaimer, nor were there disagreements on accounting principles or practices.

Prior to CBIZ CPAs P.C.’s appointment, Hennessy Advisors had not sought advice from the firm on accounting principles or audit opinions on the company’s financial statements. The change in auditors was made without any reportable events, which typically indicate significant issues during the audit process.

These are recent developments in the company’s operations, and Hennessy Advisors has ensured compliance with regulatory requirements by providing Marcum with a copy of this announcement before filing it with the SEC. Marcum has also confirmed their agreement with the statements made by Hennessy Advisors in a letter to the SEC. The ongoing commitment to transparency and adherence to regulatory requirements by Hennessy Advisors underscores the company’s dedication to its investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.