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Eaton Vance Corp.’s (EV - Free Report) first-quarter fiscal 2018 (ended Jan 31) adjusted earnings of 78 cents per share surpassed the Zacks Consensus Estimate of 71 cents. Also, the bottom line was 47% above the prior-year quarter’s tally.
Higher revenues and growth in assets under management (AUM) supported the results. Further, the company’s liquidity position remained strong. However, a rise in operating expenses was a headwind.
Net income attributable to shareholders was $78.1 million or 63 cents per share, up from $60.7 million or 53 cents in the year-ago quarter.
Revenues & Expenses Rise
Total revenues for the quarter amounted to $421.4 million, up 19% year over year. This upside was mainly driven by higher management fees and other revenues. Also, the top line beat the Zacks Consensus Estimate of $417 million.
Total expenses increased 14% from the prior-year quarter to $285.6 million, largely due to higher compensation and related costs, fund-related expenses and distribution expenses.
Total operating income jumped 25% year over year to $135.8 million.
Liquidity Position Strong, AUM Improves
As of Jan 31, 2018, Eaton Vance had $533.3 million in cash and cash equivalents compared with $610.6 million as of Oct 31, 2016. Further, the company had no borrowings outstanding against its new $300 million credit facility.
Eaton Vance’s consolidated AUM increased 24% from the year-ago quarter to $449.2 billion, reflecting net inflows of $37.1 billion and a market price appreciation of $48.4 billion.
Share Repurchase
During the reported quarter, Eaton Vance repurchased nearly 0.7 million shares of its Non-Voting Common Stock for $36.3 million under its existing repurchase authorization.
Our Viewpoint
Eaton Vance’s improving AUM along with revenue rise are likely to support its growth in the quarters ahead. However, rising expenses remain a major headwind.
Performance of Other Investment 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 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. Results benefited from an improvement in revenues as well as growth in AUM and assets under administration. However, rise in expenses acted as a headwind.
Invesco Ltd. (IVZ - Free Report) reported fourth-quarter 2017 adjusted earnings of 73 cents per share, outpacing the Zacks Consensus Estimate of 70 cents. Results were primarily supported by higher revenues and long-term net inflows. However, increase in operating expenses was an undermining factor.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Eaton Vance (EV) Q1 Earnings & Revenues Beat, Expenses Rise
Eaton Vance Corp.’s (EV - Free Report) first-quarter fiscal 2018 (ended Jan 31) adjusted earnings of 78 cents per share surpassed the Zacks Consensus Estimate of 71 cents. Also, the bottom line was 47% above the prior-year quarter’s tally.
Higher revenues and growth in assets under management (AUM) supported the results. Further, the company’s liquidity position remained strong. However, a rise in operating expenses was a headwind.
Net income attributable to shareholders was $78.1 million or 63 cents per share, up from $60.7 million or 53 cents in the year-ago quarter.
Revenues & Expenses Rise
Total revenues for the quarter amounted to $421.4 million, up 19% year over year. This upside was mainly driven by higher management fees and other revenues. Also, the top line beat the Zacks Consensus Estimate of $417 million.
Total expenses increased 14% from the prior-year quarter to $285.6 million, largely due to higher compensation and related costs, fund-related expenses and distribution expenses.
Total operating income jumped 25% year over year to $135.8 million.
Liquidity Position Strong, AUM Improves
As of Jan 31, 2018, Eaton Vance had $533.3 million in cash and cash equivalents compared with $610.6 million as of Oct 31, 2016. Further, the company had no borrowings outstanding against its new $300 million credit facility.
Eaton Vance’s consolidated AUM increased 24% from the year-ago quarter to $449.2 billion, reflecting net inflows of $37.1 billion and a market price appreciation of $48.4 billion.
Share Repurchase
During the reported quarter, Eaton Vance repurchased nearly 0.7 million shares of its Non-Voting Common Stock for $36.3 million under its existing repurchase authorization.
Our Viewpoint
Eaton Vance’s improving AUM along with revenue rise are likely to support its growth in the quarters ahead. However, rising expenses remain a major headwind.
Performance of Other Investment 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 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. Results benefited from an improvement in revenues as well as growth in AUM and assets under administration. However, rise in expenses acted as a headwind.
Invesco Ltd. (IVZ - Free Report) reported fourth-quarter 2017 adjusted earnings of 73 cents per share, outpacing the Zacks Consensus Estimate of 70 cents. Results were primarily supported by higher revenues and long-term net inflows. However, increase in operating expenses was an undermining factor.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>