Back to top

Image: Bigstock

Investment Managers' Q3 Earnings on Oct 27: IVZ, PFG & More

Read MoreHide Full Article

Investment Management industry, which is part of the broader Finance sector, has performed decently over the past several quarters. Notably, the U.S. equity markets have posted decent gains in July and the S&P 500’s return in the July-September quarter came in at 3.11%. Following the Brexit sell-off, the quarter’s average assets under management (AUM) levels for majority of the firms is expected to witness a notable rise, driven by a sharp move in the markets early in the quarter.

However, heightened regulatory restrictions have created a challenging backdrop for the traditional asset managers. Also, equity markets became volatile toward the end of the quarter, raising concerns regarding the future prospects of the industry as a whole.

Notably, per our Earnings Preview report, overall earnings for the Finance sector in third-quarter 2016 are expected to be up 14.4% year over year.

Now, let’s have a look at the four investment management stocks that are scheduled to report their Q3 earnings tomorrow.

Invesco Ltd.’s (IVZ - Free Report) results, which are slated to be announced before the market opens, are expected to be primarily driven by an improvement in fees and stable expenses. However, the overall top-line growth is anticipated to have remained muted during the quarter, owing to the fall in the company’s AUM, per its latest monthly activity report. (Read more: Will Invesco Stock Continue to Rise Post Q3 Earnings?)

Nonetheless, the Zacks Consensus Estimate has increased by nearly 1.7% over the last 30 days. However, we cannot conclusively predict an earnings beat for the quarter as Invesco has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Notably, Invesco posted an average negative surprise of 3.5% in the trailing four quarters.

INVESCO LTD Price and EPS Surprise

INVESCO LTD Price and EPS Surprise | INVESCO LTD Quote


Principal Financial Group Inc. (PFG - Free Report) is scheduled to report its results after the market closes. The company is expected to report operating earnings growth in the third quarter on the back of its diversified and integrated business model. However, a soft interest rate environment is likely to have weighed on the company’s investment results. (Read more: Principal Financial: What's Up this Earnings Season?)

Notably, the Zacks Consensus Estimate of $1.12 has increased by nearly 1% over the last 30 days and depicts a year-over-year increase of 5.4%. However, we cannot conclusively predict an earnings beat for the upcoming release as Principal Financial carries a Zacks Rank #2 (Buy) with an Earnings ESP of 0.00%.

Nonetheless, Principal Financial has posted an average positive surprise in the trailing four quarters.

PRINCIPAL FINL Price and EPS Surprise

PRINCIPAL FINL Price and EPS Surprise | PRINCIPAL FINL Quote


T. Rowe Price Group, Inc. (TROW - Free Report) is scheduled to announce its results before the market opens. The company is anticipated to record an increase in AUM as the third quarter experienced strong performance of equity markets. The current low interest-rate environment, however, continues to impact the company’s fee income growth. (Read more: T. Rowe Price Q3 Earnings: What's in the Cards?)

The Zacks Consensus Estimate for the upcoming release reflects a year-over-year rise of 12.9%. Also, estimates have increased by nearly 1% over the past 30 days. However, we cannot conclusively predict the earnings beat for T. Rowe Price, as it holds a Zacks Rank #2 and an Earnings ESP of 0.00%.

T. Rowe Price reported an average positive surprise of 3.5% in the trailing four quarters.

T ROWE PRICE Price and EPS Surprise

T ROWE PRICE Price and EPS Surprise | T ROWE PRICE Quote


Federated Investors, Inc. is slated to report its results after the market closes. Notably, the Zacks Consensus Estimate for the third quarter has increased 1% over the last 30 days. Moreover, it reflects a year-over-year rise of approximately 23%. However, the company is less likely to report an earnings beat in its upcoming release as it carries a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.

Nevertheless, Federated Investors posted positive earnings surprises in all of the four trailing quarters.

FEDERATED INVST Price and EPS Surprise

FEDERATED INVST Price and EPS Surprise | FEDERATED INVST Quote

Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

Stay tuned! Check back on our full write-up on earnings releases of these stocks.

Zacks' Best Investment Ideas for Long-Term Profit

Today you can gain access to long-term trades with double and triple-digit profit potential rarely available to the public. Starting now, you can look inside our stocks under $10, home run and value stock portfolios, plus more. Want a peek at this private information? Click here >>

Published in