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Cohen & Steers’ (CNS - Free Report) third-quarter 2018 adjusted earnings came in at 64 cents per share, surpassing the Zacks Consensus Estimate by 2 cents. Earnings were 9.1% higher than the year-ago quarter tally.
Revenues in Q3 results showed an increase, which was more than offset by higher operating expenses. This resulted in a drop in operating income on a year-over-year basis. AUM also declined during the quarter.
Net income available to common stockholders (GAAP basis) was $30.8 million, up 22.8% from the prior-year quarter.
Revenue Growth Offset by Elevated Expenses
The company’s quarterly revenues (GAAP basis) came in at $98.3 million, up 1.6% from the year-ago quarter on an increase in investment advisory and administration fees.
Total expenses (GAAP basis) amounted to $59.1 million, up 5.9% year over year on rise in employee compensation and benefits expenses.
Operating income (GAAP basis) came in at $39.2 million, down 4.3% year over year.
AUM & Inflows
As of Sep 30, 2018, AUM was $60.1 billion, down 2.3% from the year-earlier quarter. Notably, the company witnessed long-term net outflows of $76 million in the reported quarter against inflows of $1395 million in the prior-year quarter.
Also, average AUM for the July-September quarter totaled $60.4 billion, down 1.4% from the comparable period last year.
Our Viewpoint
Cohen & Steers’ AUM in third-quarter 2018 declined on a year-over-year basis. However, consistent growth in AUM over the last five years will likely boost the top line. Nonetheless, expenses increased in the third quarter, which offset the rise in revenues. This led to the decline in operating income. As the company continues to invest in franchises, operating expenses are expected to increase further, which might hamper profitability to some extent.
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 earnings numbers on Oct 25, while Apollo Global Management, LLC (APO - Free Report) and Ares Management, L.P. (ARES - Free Report) are slated to report quarterly figures on Oct 31 and Nov 1, respectively.
Wall Street’s Next Amazon
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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Cohen & Steers' (CNS) Q3 Earnings Beat Estimates, Costs Rise
Cohen & Steers’ (CNS - Free Report) third-quarter 2018 adjusted earnings came in at 64 cents per share, surpassing the Zacks Consensus Estimate by 2 cents. Earnings were 9.1% higher than the year-ago quarter tally.
Revenues in Q3 results showed an increase, which was more than offset by higher operating expenses. This resulted in a drop in operating income on a year-over-year basis. AUM also declined during the quarter.
Net income available to common stockholders (GAAP basis) was $30.8 million, up 22.8% from the prior-year quarter.
Revenue Growth Offset by Elevated Expenses
The company’s quarterly revenues (GAAP basis) came in at $98.3 million, up 1.6% from the year-ago quarter on an increase in investment advisory and administration fees.
Total expenses (GAAP basis) amounted to $59.1 million, up 5.9% year over year on rise in employee compensation and benefits expenses.
Operating income (GAAP basis) came in at $39.2 million, down 4.3% year over year.
AUM & Inflows
As of Sep 30, 2018, AUM was $60.1 billion, down 2.3% from the year-earlier quarter. Notably, the company witnessed long-term net outflows of $76 million in the reported quarter against inflows of $1395 million in the prior-year quarter.
Also, average AUM for the July-September quarter totaled $60.4 billion, down 1.4% from the comparable period last year.
Our Viewpoint
Cohen & Steers’ AUM in third-quarter 2018 declined on a year-over-year basis. However, consistent growth in AUM over the last five years will likely boost the top line. Nonetheless, expenses increased in the third quarter, which offset the rise in revenues. This led to the decline in operating income. As the company continues to invest in franchises, operating expenses are expected to increase further, which might hamper profitability to some extent.
Cohen & Steers Inc Price, Consensus and EPS Surprise
Cohen & Steers Inc price-consensus-eps-surprise-chart | Cohen & Steers Inc Quote
Currently, Cohen & Steers carries a Zacks Rank #4 (Sell).
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 earnings numbers on Oct 25, while Apollo Global Management, LLC (APO - Free Report) and Ares Management, L.P. (ARES - Free Report) are slated to report quarterly figures on Oct 31 and Nov 1, respectively.
Wall Street’s Next Amazon
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.
Click for details >>