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Cohen & Steers' (CNS) Q2 Earnings Miss, Expenses Flare Up
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Cohen & Steers’ (CNS - Free Report) second-quarter 2018 adjusted earnings came in at 59 cents per share, missing the Zacks Consensus Estimate by 3 cents. However, the reported figure came in 18% higher than the year-ago quarter tally.
Results were driven by an increase in revenues. Nonetheless, the positives were more than offset by higher operating expenses. Though net income increased on a year-over-year basis, it was primarily a result of lower tax rates and loss attributable to redeemable non-controlling interest.
Net income available to common stockholders (GAAP basis) was $30 million, up 27.6% from the prior-year quarter.
Revenue Growth Offset by Elevated Expenses
The company’s quarterly revenues (GAAP basis) came in at $94.4 million, inching up 1.8% from the year-ago quarter. The rise was primarily driven by an increase in investment advisory and administration fees. However, distribution and service fees, along with portfolio consulting and other revenues, witnessed a marginal decline.
Total expenses (GAAP basis) amounted to $58.1million, increasing 5% year over year. This resulted from rise in employee compensation and benefits, general and administrative expenses, and depreciation and amortization expenses.
Operating income (GAAP basis) came in at $36.3 million, down 2.9% year over year.
AUM & Inflows
As of Jun 30, 2018, AUM was $60.2 billion, down marginally from the year-earlier quarter. Notably, the company witnessed long-term net inflows of $180 million in the reported quarter against inflows of $1330 million recorded in the prior-year quarter.
Also, average AUM for the April-June quarter totaled $58.7 billion, down 1.6% from the comparable period last year.
Our Viewpoint
Though Cohen & Steers’ AUM for second quarter 2018 declined on a year-over-year basis, its consistent growth in AUM over the last five years will likely supplement top line. In addition, lower tax rates are expected to support its bottom-line growth. Nevertheless, elevated expenses continue to dampen the company’s performance.
Cohen & Steers Inc Price, Consensus and EPS Surprise
Among other stocks in the same industry, T. Rowe Price Group, Inc. (TROW - Free Report) is set to release its earnings numbers on Jul 25, while Ares Management, L.P. (ARES - Free Report) and Apollo Global Management, LLC (APO - Free Report) are slated to report their figures on Aug 2.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Cohen & Steers' (CNS) Q2 Earnings Miss, Expenses Flare Up
Cohen & Steers’ (CNS - Free Report) second-quarter 2018 adjusted earnings came in at 59 cents per share, missing the Zacks Consensus Estimate by 3 cents. However, the reported figure came in 18% higher than the year-ago quarter tally.
Results were driven by an increase in revenues. Nonetheless, the positives were more than offset by higher operating expenses. Though net income increased on a year-over-year basis, it was primarily a result of lower tax rates and loss attributable to redeemable non-controlling interest.
Net income available to common stockholders (GAAP basis) was $30 million, up 27.6% from the prior-year quarter.
Revenue Growth Offset by Elevated Expenses
The company’s quarterly revenues (GAAP basis) came in at $94.4 million, inching up 1.8% from the year-ago quarter. The rise was primarily driven by an increase in investment advisory and administration fees. However, distribution and service fees, along with portfolio consulting and other revenues, witnessed a marginal decline.
Total expenses (GAAP basis) amounted to $58.1million, increasing 5% year over year. This resulted from rise in employee compensation and benefits, general and administrative expenses, and depreciation and amortization expenses.
Operating income (GAAP basis) came in at $36.3 million, down 2.9% year over year.
AUM & Inflows
As of Jun 30, 2018, AUM was $60.2 billion, down marginally from the year-earlier quarter. Notably, the company witnessed long-term net inflows of $180 million in the reported quarter against inflows of $1330 million recorded in the prior-year quarter.
Also, average AUM for the April-June quarter totaled $58.7 billion, down 1.6% from the comparable period last year.
Our Viewpoint
Though Cohen & Steers’ AUM for second quarter 2018 declined on a year-over-year basis, its consistent growth in AUM over the last five years will likely supplement top line. In addition, lower tax rates are expected to support its bottom-line growth. Nevertheless, elevated expenses continue to dampen the company’s performance.
Cohen & Steers Inc Price, Consensus and EPS Surprise
Cohen & Steers Inc Price, Consensus and EPS Surprise | Cohen & Steers Inc Quote
Cohen & Steers currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other stocks in the same industry, T. Rowe Price Group, Inc. (TROW - Free Report) is set to release its earnings numbers on Jul 25, while Ares Management, L.P. (ARES - Free Report) and Apollo Global Management, LLC (APO - Free Report) are slated to report their figures on Aug 2.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>