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Affiliated Managers (AMG) Q1 Earnings: What's in the Cards?
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Affiliated Managers Group Inc. (AMG - Free Report) is scheduled to report its first-quarter 2017 results before the opening bell on Monday, May 1.
Last quarter, the company’s earnings outpaced the Zacks Consensus Estimate. Results reflected lower operating expenses, partially offset by a fall in revenues.
Following the earnings beat and an improving operating backdrop, Affiliated Managers’ price performance was impressive. For the quarter-ended Mar 31, 2017, the company witnessed a 12.5% rise in its share price.
Further, analysts seem to be happy with the company’s business activities during the first quarter. Over the last 30 days, the stock witnessed five upward estimate revisions (no downward revision). The Zacks Consensus Estimate grew 1.6% to $3.17, in the last 30 days.
Also, Affiliated Managers boasts an impressive earnings surprise history, as evident from the chart below:
Affiliated Managers Group, Inc. Price and EPS Surprise
Our proven model does not conclusively show that Affiliated Managers is likely to beat earnings this quarter. That’s because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as 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 Affiliated Managers is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $3.17.
Zacks Rank: Affiliated Managers’ Zacks Rank #3 further increases the predictive power of ESP. However, we need a positive ESP to be confident of an earnings surprise.
Factors to Influence Q1 Results
Will Affiliated Managers be able to sustain its earnings streak this time? Let’s check the factors that are expected to impact Q1 results.
Affiliated Managers holds an almost unbeaten track record of buying equity interests in asset management companies with strong performance-oriented products. Hence, we believe that the past equity investments should continue to boost the company’s top line, driven by the excellent long-term performance of its affiliates.
Further, management expects growth in the existing alternative products along with the addition of new products to aid performance fee to grow modestly.
Also, management expects the ratio of earnings before interest, taxes, depreciation and amortization contribution to the end-of-period AUM (assets under management) for the quarter to be around 13 basis points. Further, the company projects other economic items to be around $1 million per quarter.
On the cost front, management projects total interest expenses to be $23 million in the first quarter, up sequentially. Further, the company expects amortization expenses to be $38.5 million, up on a sequential basis. Additionally, intangible-related deferred taxes are expected to be $20 million in the quarter.
Stocks that Warrant a Look
Here are a few finance stocks worth considering, as according to our model they have the right combination of elements to post an earnings beat this quarter.
Moody's Corporation (MCO - Free Report) is slated to release results on May 5. The company has an Earnings ESP of +7.38% and a Zacks Rank #2.
TCP Capital Corp. (TCPC - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #3. The company is slated to announce its results on May 9.
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Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>
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Affiliated Managers (AMG) Q1 Earnings: What's in the Cards?
Affiliated Managers Group Inc. (AMG - Free Report) is scheduled to report its first-quarter 2017 results before the opening bell on Monday, May 1.
Last quarter, the company’s earnings outpaced the Zacks Consensus Estimate. Results reflected lower operating expenses, partially offset by a fall in revenues.
Following the earnings beat and an improving operating backdrop, Affiliated Managers’ price performance was impressive. For the quarter-ended Mar 31, 2017, the company witnessed a 12.5% rise in its share price.
Further, analysts seem to be happy with the company’s business activities during the first quarter. Over the last 30 days, the stock witnessed five upward estimate revisions (no downward revision). The Zacks Consensus Estimate grew 1.6% to $3.17, in the last 30 days.
Also, Affiliated Managers boasts an impressive earnings surprise history, as evident from the chart below:
Affiliated Managers Group, Inc. Price and EPS Surprise
Affiliated Managers Group, Inc. Price and EPS Surprise | Affiliated Managers Group, Inc. Quote
Earnings Whispers
Our proven model does not conclusively show that Affiliated Managers is likely to beat earnings this quarter. That’s because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this to happen. This is not the case here, as 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 Affiliated Managers is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $3.17.
Zacks Rank: Affiliated Managers’ Zacks Rank #3 further increases the predictive power of ESP. However, we need a positive ESP to be confident of an earnings surprise.
Factors to Influence Q1 Results
Will Affiliated Managers be able to sustain its earnings streak this time? Let’s check the factors that are expected to impact Q1 results.
Affiliated Managers holds an almost unbeaten track record of buying equity interests in asset management companies with strong performance-oriented products. Hence, we believe that the past equity investments should continue to boost the company’s top line, driven by the excellent long-term performance of its affiliates.
Further, management expects growth in the existing alternative products along with the addition of new products to aid performance fee to grow modestly.
Also, management expects the ratio of earnings before interest, taxes, depreciation and amortization contribution to the end-of-period AUM (assets under management) for the quarter to be around 13 basis points. Further, the company projects other economic items to be around $1 million per quarter.
On the cost front, management projects total interest expenses to be $23 million in the first quarter, up sequentially. Further, the company expects amortization expenses to be $38.5 million, up on a sequential basis. Additionally, intangible-related deferred taxes are expected to be $20 million in the quarter.
Stocks that Warrant a Look
Here are a few finance stocks worth considering, as according to our model they have the right combination of elements to post an earnings beat this quarter.
Prudential Financial, Inc. (PRU - Free Report) is slated to release results on May 3. The company has an Earnings ESP of +0.38 % and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Moody's Corporation (MCO - Free Report) is slated to release results on May 5. The company has an Earnings ESP of +7.38% and a Zacks Rank #2.
TCP Capital Corp. (TCPC - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #3. The company is slated to announce its results on May 9.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>