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Investment Managers' Earnings on Jan 24: AMP, RJF, LM, SEIC
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The performance of the investment management/brokerage industry (part of the broader Finance sector) has been decent over the last several quarters. With the rise in interest rates, majority of the investment managers have stopped waiving off their fees, which has aided top-line growth. Moreover, given that interest rates are expected to continue to increase in the future, the industry is likely to further benefit.
Talking about the last three months of 2017, the quarter witnessed potential rise in equity issuances as well as persistent increase in debt underwriting, which led to strengthening of investment banking.
However, because of continued low volatility in both the bond and equity markets, trading activities remained sluggish in the quarter. This resulted in a decline in overall trading revenues.
Per the latest Earnings Preview, overall earnings for the investment management/brokerage industry for the recently concluded quarter are projected to improve 4.5% year over year.
Let’s have a look at what can be expected from Ameriprise Financial, Inc. (AMP - Free Report) , Raymond James Financial, Inc. (RJF - Free Report) , SEI Investments Co. (SEIC - Free Report) and Legg Mason, Inc. , which are expected to report their quarterly results tomorrow.
Based on expectations of improved advisor productivity, Ameriprise is likely to witness continued growth in assets in its Advice & Wealth Management segment. The segment’s performance is likely to aid the company’s fourth-quarter 2017 earnings. The Zacks Consensus Estimate for earnings of $3.10 for the to-be-reported quarter represents growth of 13.6% on a year-over-year basis.
However, results might be negatively impacted because of persistent outflows witnessed in the Asset Management segment.
The company’s Zacks Consensus Estimate for sales is $3.03 billion, reflecting 1.2% year-over-year decline.
Driven by strong rally in the equity markets along with increased debt issuances, Raymond James is anticipated to witness a rise in underwriting fees in first-quarter fiscal 2018 (ended Dec 31).
However, the company’s trading revenues in the to-be-reported quarter are likely to fall due to continued low market volatility. Also, despite, a large number of new M&As announced in the quarter, M&A activity in terms of deals closed globally remained weak. Thus, advisory fee growth is also expected to remain muted.
Nevertheless, the Zacks Consensus Estimate for sales for the quarter is $1.7billion, reflecting 14% growth year over year. Also, the Zacks Consensus Estimate for earnings of $1.43 reflects year-over-year improvement of 33.6%.
The earnings of SEI Investments are projected to register year-over-year growth in fourth-quarter 2017. Its Zacks Consensus Estimate for earnings of 61 cents reflects an increase of 10.9% from the prior-year quarter.
Also, the Zacks Consensus Estimate for sales is $398.8 million, which reflects growth of 8.1% year over year.
Notably, according to our quantitative model, it cannot be conclusively predicted whether SEI Investments will be able to beat the Zacks Consensus Estimate in the fourth quarter. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Earnings ESP of SEI Investments is 0.00% and it sports a Zacks Rank #1 (Strong Buy). While, a strong Zacks Rank increases the predictive power of ESP, we also need a positive ESP to be confident of an earnings beat.
Legg Mason is expected to witness an increase in performance fees in third-quarter fiscal 2018 (ended Dec 31), driven by projected growth in assets under management (AUM). The Zacks Consensus Estimate for performance fees of $37.50 million reflects 63.8% growth from the prior-year quarter.
Despite chances of a decline in distribution and service fees, and other service revenues, the company’s overall revenues are expected to improve during the quarter. The Zacks Consensus Estimate for sales of $764.42 million shows growth of 6.9% year over year.
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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Investment Managers' Earnings on Jan 24: AMP, RJF, LM, SEIC
The performance of the investment management/brokerage industry (part of the broader Finance sector) has been decent over the last several quarters. With the rise in interest rates, majority of the investment managers have stopped waiving off their fees, which has aided top-line growth. Moreover, given that interest rates are expected to continue to increase in the future, the industry is likely to further benefit.
Talking about the last three months of 2017, the quarter witnessed potential rise in equity issuances as well as persistent increase in debt underwriting, which led to strengthening of investment banking.
However, because of continued low volatility in both the bond and equity markets, trading activities remained sluggish in the quarter. This resulted in a decline in overall trading revenues.
Per the latest Earnings Preview, overall earnings for the investment management/brokerage industry for the recently concluded quarter are projected to improve 4.5% year over year.
Let’s have a look at what can be expected from Ameriprise Financial, Inc. (AMP - Free Report) , Raymond James Financial, Inc. (RJF - Free Report) , SEI Investments Co. (SEIC - Free Report) and Legg Mason, Inc. , which are expected to report their quarterly results tomorrow.
Based on expectations of improved advisor productivity, Ameriprise is likely to witness continued growth in assets in its Advice & Wealth Management segment. The segment’s performance is likely to aid the company’s fourth-quarter 2017 earnings. The Zacks Consensus Estimate for earnings of $3.10 for the to-be-reported quarter represents growth of 13.6% on a year-over-year basis.
However, results might be negatively impacted because of persistent outflows witnessed in the Asset Management segment.
The company’s Zacks Consensus Estimate for sales is $3.03 billion, reflecting 1.2% year-over-year decline.
Ameriprise currently carries a Zacks Rank #2 (Buy). (Read more: What’s in the Cards for Ameriprise in Q4 Earnings?)
AMERIPRISE FINANCIAL SERVICES, INC. Price and EPS Surprise
AMERIPRISE FINANCIAL SERVICES, INC. Price and EPS Surprise | AMERIPRISE FINANCIAL SERVICES, INC. Quote
Driven by strong rally in the equity markets along with increased debt issuances, Raymond James is anticipated to witness a rise in underwriting fees in first-quarter fiscal 2018 (ended Dec 31).
However, the company’s trading revenues in the to-be-reported quarter are likely to fall due to continued low market volatility. Also, despite, a large number of new M&As announced in the quarter, M&A activity in terms of deals closed globally remained weak. Thus, advisory fee growth is also expected to remain muted.
Nevertheless, the Zacks Consensus Estimate for sales for the quarter is $1.7billion, reflecting 14% growth year over year. Also, the Zacks Consensus Estimate for earnings of $1.43 reflects year-over-year improvement of 33.6%.
The stock currently carries a Zacks Rank #2. (Read more: Can Underwriting Fees Aid Raymond James Q1 Earnings?)
Raymond James Financial, Inc. Price and EPS Surprise
Raymond James Financial, Inc. Price and EPS Surprise | Raymond James Financial, Inc. Quote
The earnings of SEI Investments are projected to register year-over-year growth in fourth-quarter 2017. Its Zacks Consensus Estimate for earnings of 61 cents reflects an increase of 10.9% from the prior-year quarter.
Also, the Zacks Consensus Estimate for sales is $398.8 million, which reflects growth of 8.1% year over year.
Notably, according to our quantitative model, it cannot be conclusively predicted whether SEI Investments will be able to beat the Zacks Consensus Estimate in the fourth quarter. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The Earnings ESP of SEI Investments is 0.00% and it sports a Zacks Rank #1 (Strong Buy). While, a strong Zacks Rank increases the predictive power of ESP, we also need a positive ESP to be confident of an earnings beat.
SEI Investments Company Price and EPS Surprise
SEI Investments Company Price and EPS Surprise | SEI Investments Company Quote
Legg Mason is expected to witness an increase in performance fees in third-quarter fiscal 2018 (ended Dec 31), driven by projected growth in assets under management (AUM). The Zacks Consensus Estimate for performance fees of $37.50 million reflects 63.8% growth from the prior-year quarter.
Despite chances of a decline in distribution and service fees, and other service revenues, the company’s overall revenues are expected to improve during the quarter. The Zacks Consensus Estimate for sales of $764.42 million shows growth of 6.9% year over year.
Also, the Zacks Consensus Estimate for earnings for the to-be-reported quarter is 84 cents, which reflects year-over-year improvement of 68%. (Read more: Can Performance Fees Boost Legg Mason’s Q3 Earnings?)
The stock currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Legg Mason, Inc. Price and EPS Surprise
Legg Mason, Inc. Price and EPS Surprise | Legg Mason, Inc. Quote
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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