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Invesco (IVZ) to Report Q1 Earnings: What's in the Cards?
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Invesco Ltd. (IVZ - Free Report) is slated to release first-quarter 2017 results on Apr 27, before the market opens.
Last quarter, the company’s adjusted earnings surpassed the Zacks Consensus Estimate, primarily driven by a decrease in expenses. Improvement in assets under management (AUM) was another positive. However, lower revenues acted as a headwind.
Despite the earnings beat, shares of Invesco did not witness any improvement during the three months ended Mar 31.
However, analysts seem to have a bullish stance on Invesco’s performance. The Zacks Consensus Estimate for the company’s just-concluded quarter increased by 1.8% in the last seven days.
Invesco does not have a decent earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in two of the trailing four quarters as is evident from the chart below.
Our proven model cannot conclusively predict if Invesco will be able to beat the Zacks Consensus Estimate this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as is elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Invesco is 0.00%. This is because the Most Accurate estimate of 56 cents is in line with the Zacks Consensus Estimate.
Zacks Rank: Invesco’s Zacks Rank #3 increases the predictive power of ESP. However, we also need a positive Earnings ESP to be confident of an earnings beat.
Factors to Influence Q1 Results
Invesco’s expenses in the first-quarter are likely to rise slightly. Management expects compensation expense to be up $20 million sequentially due to seasonal payroll taxes and a one-month impact of base salary increases.
On the revenue front, management expects performance fees to be around $15–$20 million, driven by U.K. investment trusts. However, because of continued pressure on short-dated equity UITs as a result of the early adoption of DOL rules and a structural change in the pricing of real estate products, other revenues are expected to fall.
Notably, per Invesco’s latest preliminary month-end AUM report, as of Mar 31, 2017, total AUM fell marginally on a sequential basis, depicting decline in Money Market AUM and long-term net outflows. Despite the slight decline, a strong market might help it to see improvement in AUM for the overall quarter.
Stocks to Consider
Here are some finance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Prosperity Bancshares, Inc. (PB - Free Report) is also scheduled to report results on Apr 26. It has an Earnings ESP of +1.02% and carries a Zacks Rank #3.
SVB Financial Group has an Earnings ESP of +0.54% and a Zacks Rank #2. It is expected to report results on Apr 27.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
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Invesco (IVZ) to Report Q1 Earnings: What's in the Cards?
Invesco Ltd. (IVZ - Free Report) is slated to release first-quarter 2017 results on Apr 27, before the market opens.
Last quarter, the company’s adjusted earnings surpassed the Zacks Consensus Estimate, primarily driven by a decrease in expenses. Improvement in assets under management (AUM) was another positive. However, lower revenues acted as a headwind.
Despite the earnings beat, shares of Invesco did not witness any improvement during the three months ended Mar 31.
However, analysts seem to have a bullish stance on Invesco’s performance. The Zacks Consensus Estimate for the company’s just-concluded quarter increased by 1.8% in the last seven days.
Invesco does not have a decent earnings surprise history. The company’s earnings lagged the Zacks Consensus Estimate in two of the trailing four quarters as is evident from the chart below.
Invesco PLC Price and EPS Surprise
Invesco PLC Price and EPS Surprise | Invesco PLC Quote
Earnings Whispers
Our proven model cannot conclusively predict if Invesco will be able to beat the Zacks Consensus Estimate this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as is elaborated below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for Invesco is 0.00%. This is because the Most Accurate estimate of 56 cents is in line with the Zacks Consensus Estimate.
Zacks Rank: Invesco’s Zacks Rank #3 increases the predictive power of ESP. However, we also need a positive Earnings ESP to be confident of an earnings beat.
Factors to Influence Q1 Results
Invesco’s expenses in the first-quarter are likely to rise slightly. Management expects compensation expense to be up $20 million sequentially due to seasonal payroll taxes and a one-month impact of base salary increases.
On the revenue front, management expects performance fees to be around $15–$20 million, driven by U.K. investment trusts. However, because of continued pressure on short-dated equity UITs as a result of the early adoption of DOL rules and a structural change in the pricing of real estate products, other revenues are expected to fall.
Notably, per Invesco’s latest preliminary month-end AUM report, as of Mar 31, 2017, total AUM fell marginally on a sequential basis, depicting decline in Money Market AUM and long-term net outflows. Despite the slight decline, a strong market might help it to see improvement in AUM for the overall quarter.
Stocks to Consider
Here are some finance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Evercore Partners Inc. (EVR - Free Report) is slated to release results on Apr 26. The company has an Earnings ESP of +11.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Prosperity Bancshares, Inc. (PB - Free Report) is also scheduled to report results on Apr 26. It has an Earnings ESP of +1.02% and carries a Zacks Rank #3.
SVB Financial Group has an Earnings ESP of +0.54% and a Zacks Rank #2. It is expected to report results on Apr 27.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>