We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Affiliated Managers (AMG) Beats on Q4 Earnings, Revenues Up
Read MoreHide Full Article
Affiliated Managers Group Inc. (AMG - Free Report) reported fourth-quarter 2017 economic earnings of $4.68 per share, outpacing the Zacks Consensus Estimate of $4.55. Also, earnings were up 23.2% year over year.
Rise in revenues and solid growth in assets under management (AUM) benefited the results. However, higher operating expenses remained an undermining factor.
Affiliated Managers’ economic net income was $261.3 million, an increase of 23.7% from the prior-year quarter.
For 2017, economic earnings of $14.60 per share surpassed the Zacks Consensus Estimate of $14.50. Also, earnings were up 13.7% year over year. Economic net income was $824.4 million, an increase of 17.2% from the prior-year quarter.
Revenues & Expenses Rise
Total revenues grew 9.8% year over year to $604.1 million. However, the top line missed the Zacks Consensus Estimate of $607.5 million.
For 2017, total revenues were $2.31 billion, up 5% year over year. Also, the figure was in line with the Zacks Consensus Estimate.
Earnings before interest, taxes, depreciation and amortization were $361.3 million, up 24.7% from the year-ago quarter.
Total operating expenses increased 4.8% year over year to $394.7 million. The rise was primarily due to higher compensation and related expenses, and other operating expenses.
As of Dec 31, 2017, total AUM grew 21.4% year over year to $836.3 billion. The quarter also witnessed net client cash inflow of $1 billion.
Capital & Liquidity Position Decent
As of Dec 31, 2017, Affiliated Managers had $439.5 million in cash and cash equivalents compared with $430.8 million as of Dec 31, 2016. Notably, the company had $809 million of senior bank debt compared with $868.6 million as of Dec 31, 2016.
Shareholders’ equity as of Dec 31, 2017, totaled $3.82 billion, up from $3.62 billion as of Dec 31, 2016.
Capital Deployment Activity
During the reported quarter, the company repurchased 0.7 million shares.
Concurrent with the earnings release, Affiliated Managers increased its share repurchase authorization to 5 million shares.
Also, the company announced a quarterly cash dividend of 30 cents per share, representing a hike of 50% from the prior payout. The dividend will be paid on Feb 23 to the shareholders on record as of Feb 8.
Our Take
Affiliated Managers remains well positioned for growth based on successful partnerships and global distribution capability, along with a diverse product mix. However, we remain concerned about the impact of increased debt levels and higher intangibles on its near-term profitability.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
Performance & Upcoming Release of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2017 adjusted earnings of $6.24 per share outpaced the Zacks Consensus Estimate of $6.08. Results benefited from an improvement in revenues, rise in AUM and steady long-term inflows. However, increase in operating expenses acted as a headwind.
Ameriprise Financial Inc.’s (AMP - Free Report) fourth-quarter 2017 adjusted operating earnings per share of $3.26 comfortably surpassed the Zacks Consensus Estimate of $3.09. Also, the figure compares favorably with $2.73 per share registered in the year-ago quarter.
The Blackstone Group L.P. (BX - Free Report) is scheduled to come up with its financial numbers on Feb 1.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Affiliated Managers (AMG) Beats on Q4 Earnings, Revenues Up
Affiliated Managers Group Inc. (AMG - Free Report) reported fourth-quarter 2017 economic earnings of $4.68 per share, outpacing the Zacks Consensus Estimate of $4.55. Also, earnings were up 23.2% year over year.
Rise in revenues and solid growth in assets under management (AUM) benefited the results. However, higher operating expenses remained an undermining factor.
Affiliated Managers’ economic net income was $261.3 million, an increase of 23.7% from the prior-year quarter.
For 2017, economic earnings of $14.60 per share surpassed the Zacks Consensus Estimate of $14.50. Also, earnings were up 13.7% year over year. Economic net income was $824.4 million, an increase of 17.2% from the prior-year quarter.
Revenues & Expenses Rise
Total revenues grew 9.8% year over year to $604.1 million. However, the top line missed the Zacks Consensus Estimate of $607.5 million.
For 2017, total revenues were $2.31 billion, up 5% year over year. Also, the figure was in line with the Zacks Consensus Estimate.
Earnings before interest, taxes, depreciation and amortization were $361.3 million, up 24.7% from the year-ago quarter.
Total operating expenses increased 4.8% year over year to $394.7 million. The rise was primarily due to higher compensation and related expenses, and other operating expenses.
As of Dec 31, 2017, total AUM grew 21.4% year over year to $836.3 billion. The quarter also witnessed net client cash inflow of $1 billion.
Capital & Liquidity Position Decent
As of Dec 31, 2017, Affiliated Managers had $439.5 million in cash and cash equivalents compared with $430.8 million as of Dec 31, 2016. Notably, the company had $809 million of senior bank debt compared with $868.6 million as of Dec 31, 2016.
Shareholders’ equity as of Dec 31, 2017, totaled $3.82 billion, up from $3.62 billion as of Dec 31, 2016.
Capital Deployment Activity
During the reported quarter, the company repurchased 0.7 million shares.
Concurrent with the earnings release, Affiliated Managers increased its share repurchase authorization to 5 million shares.
Also, the company announced a quarterly cash dividend of 30 cents per share, representing a hike of 50% from the prior payout. The dividend will be paid on Feb 23 to the shareholders on record as of Feb 8.
Our Take
Affiliated Managers remains well positioned for growth based on successful partnerships and global distribution capability, along with a diverse product mix. However, we remain concerned about the impact of increased debt levels and higher intangibles on its near-term profitability.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise | Affiliated Managers Group, Inc. Quote
Affiliated Managers carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Upcoming Release of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2017 adjusted earnings of $6.24 per share outpaced the Zacks Consensus Estimate of $6.08. Results benefited from an improvement in revenues, rise in AUM and steady long-term inflows. However, increase in operating expenses acted as a headwind.
Ameriprise Financial Inc.’s (AMP - Free Report) fourth-quarter 2017 adjusted operating earnings per share of $3.26 comfortably surpassed the Zacks Consensus Estimate of $3.09. Also, the figure compares favorably with $2.73 per share registered in the year-ago quarter.
The Blackstone Group L.P. (BX - Free Report) is scheduled to come up with its financial numbers on Feb 1.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>