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Artisan Partners (APAM) Up 5.2% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Artisan Partners Asset Management (APAM - Free Report) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Artisan Partners due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Artisan Partners Q2 Earnings Beat Estimates, AUM Up
Artisan Partners’ second-quarter 2021 adjusted earnings came in at $1.28 per share, surpassing the Zacks Consensus Estimate of $1.21. The bottom line soared 80% from the year-ago quarter figure.
Results were supported by rise in revenues and higher AUM. However, increase in expenses was an undermining factor.
Net income available to common stockholders (GAAP basis) was $88.2 million or $1.33 per share, up from $46.2 million or 72 cents per share in the prior-year quarter.
Revenues Climb, Expenses Increase
Revenues came in at $304.9 million, jumping 50% from the year-ago quarter. The rise primarily resulted from higher average AUM balance. The top line surpassed the Zacks Consensus Estimate of $302.4 million.
Management fees earned from the Artisan Funds & Artisan Global Funds surged 61% year over year to $188.7 million. Management fees earned from Separate accounts grew 44% to $112.1 million.
Total expenses amounted to $167.1 million, up 32% year over year. The rise was largely due to higher employee compensation and benefits expenses.
Operating income was $137.8 million, up 80% year over year.
AUM Increases on Net Inflows
As of Jun 30, 2021, AUM was $175.2 billion, up 45% from the year-earlier quarter. The company witnessed net inflows of $6.6 billion and $48.7 billion of investment returns during the second quarter.
Average AUM totaled $170.5 billion, up 56%.
Balance Sheet Position
Cash and other investments were $228.7 million compared with $155 million as of Dec 31, 2020. The company’s debt leverage ratio, calculated in accordance with its loan agreements, was 0.4 as of Jun 30, 2021.
Total stockholders’ equity was $240.4 million as of Jun 30, 2021, compared with $191 million on Dec 31, 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Artisan Partners has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Artisan Partners has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Artisan Partners (APAM) Up 5.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Artisan Partners Asset Management (APAM - Free Report) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Artisan Partners due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Artisan Partners Q2 Earnings Beat Estimates, AUM Up
Artisan Partners’ second-quarter 2021 adjusted earnings came in at $1.28 per share, surpassing the Zacks Consensus Estimate of $1.21. The bottom line soared 80% from the year-ago quarter figure.
Results were supported by rise in revenues and higher AUM. However, increase in expenses was an undermining factor.
Net income available to common stockholders (GAAP basis) was $88.2 million or $1.33 per share, up from $46.2 million or 72 cents per share in the prior-year quarter.
Revenues Climb, Expenses Increase
Revenues came in at $304.9 million, jumping 50% from the year-ago quarter. The rise primarily resulted from higher average AUM balance. The top line surpassed the Zacks Consensus Estimate of $302.4 million.
Management fees earned from the Artisan Funds & Artisan Global Funds surged 61% year over year to $188.7 million. Management fees earned from Separate accounts grew 44% to $112.1 million.
Total expenses amounted to $167.1 million, up 32% year over year. The rise was largely due to higher employee compensation and benefits expenses.
Operating income was $137.8 million, up 80% year over year.
AUM Increases on Net Inflows
As of Jun 30, 2021, AUM was $175.2 billion, up 45% from the year-earlier quarter. The company witnessed net inflows of $6.6 billion and $48.7 billion of investment returns during the second quarter.
Average AUM totaled $170.5 billion, up 56%.
Balance Sheet Position
Cash and other investments were $228.7 million compared with $155 million as of Dec 31, 2020. The company’s debt leverage ratio, calculated in accordance with its loan agreements, was 0.4 as of Jun 30, 2021.
Total stockholders’ equity was $240.4 million as of Jun 30, 2021, compared with $191 million on Dec 31, 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Artisan Partners has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Artisan Partners has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.