Waddell Profits Rise 21% to $40.5 Million

Waddell & Reed Financial reported third quarter net income of $40.5 million, or 47 cents per diluted share, up 21% from $33.4 million, or 39 cents per diluted share, in the third quarter of 2009.

“Our comprehensive product line, coupled with solid long-term investment performance, provided our advisers and distribution partners with a number of attractive alternatives to satisfy clients’ investment goals,” said Henry J. Herrmann, chairman and chief executive officer of the firm. “Despite poor investor sentiment toward equities, Waddell & Reed continued to gain market share. Inflows during the quarter represent annualized organic growth of 3.9%, compared to an estimated 2.6% for the industry.”