It has been about a month since the last earnings report for Artisan Partners Asset Management (APAM Quick QuoteAPAM - Free Report) . Shares have added about 19.4% 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 Q3 Earnings Lag Estimates, AUM Falls

Artisan Partners’ third-quarter 2022 adjusted net income per adjusted share was 70 cents, missing the Zacks Consensus Estimate of 71 cents. The bottom line declined from $1.33 in the year-ago quarter.

Lower management fees earned from Separate accounts and the Artisan Funds & Artisan Global Funds weighed on the overall top line. Lower AUM on global market declines was another undermining factor. Lower expenses alleviated the bottom-line pressure.

Net income attributable to Artisan Partners (GAAP basis) was $44.2 million, down from $86.4 million in the prior year.

Revenues Fall, Expenses Reduce

Third-quarter revenues were $234.3 million, down 26% from the year-ago quarter. The top line missed the Zacks Consensus Estimate of $239.8 million.

Management fees earned from the Artisan Funds & Artisan Global Funds fell 26.5% year over year to $146.4 million. Management fees earned from Separate accounts declined 25% to $87.8 million.

Total operating expenses amounted to $155.6 million, down 10% year over year. The fall was primarily due to lower compensation and benefits, partially offset by higher occupancy, and general and administrative expenses.

The operating income was $78.7 million, down 45% year over year.

AUM Falls

As of Sep 30, 2022, the ending AUM was $120.6 billion, down 7.6% from the earlier quarter due to global market declines.

The average AUM totaled $132.9 billion, down 8% from the prior quarter.

Balance Sheet Position Deteriorates

Cash and cash equivalents were $168.1 million compared with $189.2 million as of Dec 31, 2021. The company’s debt leverage ratio, calculated in accordance with its loan agreements, was 0.4 as of Sep 30, 2022.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision flatlined during the past month.

The consensus estimate has shifted -10.77% due to these changes.

VGM Scores

At this time, Artisan Partners has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Artisan Partners has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Artisan Partners is part of the Zacks Financial - Investment Management industry. Over the past month, Ameriprise Financial Services (AMP Quick QuoteAMP - Free Report) , a stock from the same industry, has gained 7.5%. The company reported its results for the quarter ended September 2022 more than a month ago.

Ameriprise reported revenues of $3.54 billion in the last reported quarter, representing a year-over-year change of +1.4%. EPS of $6.43 for the same period compares with $5.91 a year ago.

Ameriprise is expected to post earnings of $6.34 per share for the current quarter, representing a year-over-year change of +3.1%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Ameriprise. Also, the stock has a VGM Score of C.