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.
Shares of Eaton Vance Corp. (EV - Free Report) jumped 7.6% following the release of second-quarter fiscal 2019 (ended Apr 30) results. Adjusted earnings of 89 cents per share handily surpassed the Zacks Consensus Estimate of 76 cents. Also, the bottom line increased 16% year over year.
Results were driven by improvement in assets under management (AUM) balance and a slight rise in management fees. Further, the company’s liquidity position remained strong. However, a slight fall in revenues and higher operating expenses were headwinds.
Net income attributable to shareholders (GAAP basis) was $101.8 million, up 5% from the year-ago quarter.
Revenues Decline, Expenses Rise
Total revenues in the reported quarter were $411.9 million, down marginally year over year. Rise in management fees and stable service fees were more than offset by lower distribution and underwriter fees, and other revenues. However, the top line beat the Zacks Consensus Estimate of $405.7 million.
Total expenses increased 2% from the prior-year quarter to $284.7 million, largely due to higher amortization of deferred sales commissions.
Total operating income declined 4% year over year to $127.2 million.
Liquidity Position Strong, AUM Balance Improves
As of Apr 30, 2019, Eaton Vance had $525 million in cash and cash equivalents compared with $600.7 million on Oct 31, 2018. The company had no borrowings outstanding against its $300-million credit facility.
Eaton Vance’s consolidated AUM grew 7% year over year to $469.9 billion as of Apr 30, 2019. The reported quarter witnessed net inflows of $11.9 billion.
Share Repurchase Update
During first-half fiscal 2019, Eaton Vance repurchased and retired nearly 4.7 million shares of its Non-Voting Common Stock for $183.5 million under the company’s existing repurchase authorization.
As of Apr 30, 2019, nearly 2.6 million shares remained available under buyback authorization.
Our Viewpoint
Eaton Vance’s improving AUM along with higher revenues will likely support growth in the quarters ahead. However, escalating expenses might hamper its bottom-line growth to quite an extent.
Eaton Vance Corporation Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2019 adjusted earnings of $6.61 per share surpassed the Zacks Consensus Estimate of $6.20. However, the figure was 1.3% lower than the year-ago quarter’s number.
Blackstone (BX - Free Report) reported first-quarter 2019 distributable earnings of 44 cents, lagging the Zacks Consensus Estimate of 52 cents. However, the figure reflects improvement from 41 cents earned in the prior-year quarter.
Cohen & Steers’ (CNS - Free Report) first-quarter 2019 adjusted earnings came in at 58 cents per share, missing the Zacks Consensus Estimate by a penny. Also, the bottom line was 6.5% lower than the year-ago quarter figure.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
Eaton Vance (EV) Jumps 7.6% on Q2 Earnings & Revenue Beat
Shares of Eaton Vance Corp. (EV - Free Report) jumped 7.6% following the release of second-quarter fiscal 2019 (ended Apr 30) results. Adjusted earnings of 89 cents per share handily surpassed the Zacks Consensus Estimate of 76 cents. Also, the bottom line increased 16% year over year.
Results were driven by improvement in assets under management (AUM) balance and a slight rise in management fees. Further, the company’s liquidity position remained strong. However, a slight fall in revenues and higher operating expenses were headwinds.
Net income attributable to shareholders (GAAP basis) was $101.8 million, up 5% from the year-ago quarter.
Revenues Decline, Expenses Rise
Total revenues in the reported quarter were $411.9 million, down marginally year over year. Rise in management fees and stable service fees were more than offset by lower distribution and underwriter fees, and other revenues. However, the top line beat the Zacks Consensus Estimate of $405.7 million.
Total expenses increased 2% from the prior-year quarter to $284.7 million, largely due to higher amortization of deferred sales commissions.
Total operating income declined 4% year over year to $127.2 million.
Liquidity Position Strong, AUM Balance Improves
As of Apr 30, 2019, Eaton Vance had $525 million in cash and cash equivalents compared with $600.7 million on Oct 31, 2018. The company had no borrowings outstanding against its $300-million credit facility.
Eaton Vance’s consolidated AUM grew 7% year over year to $469.9 billion as of Apr 30, 2019. The reported quarter witnessed net inflows of $11.9 billion.
Share Repurchase Update
During first-half fiscal 2019, Eaton Vance repurchased and retired nearly 4.7 million shares of its Non-Voting Common Stock for $183.5 million under the company’s existing repurchase authorization.
As of Apr 30, 2019, nearly 2.6 million shares remained available under buyback authorization.
Our Viewpoint
Eaton Vance’s improving AUM along with higher revenues will likely support growth in the quarters ahead. However, escalating expenses might hamper its bottom-line growth to quite an extent.
Eaton Vance Corporation Price, Consensus and EPS Surprise
Eaton Vance Corporation price-consensus-eps-surprise-chart | Eaton Vance Corporation Quote
Currently, Eaton Vance carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2019 adjusted earnings of $6.61 per share surpassed the Zacks Consensus Estimate of $6.20. However, the figure was 1.3% lower than the year-ago quarter’s number.
Blackstone (BX - Free Report) reported first-quarter 2019 distributable earnings of 44 cents, lagging the Zacks Consensus Estimate of 52 cents. However, the figure reflects improvement from 41 cents earned in the prior-year quarter.
Cohen & Steers’ (CNS - Free Report) first-quarter 2019 adjusted earnings came in at 58 cents per share, missing the Zacks Consensus Estimate by a penny. Also, the bottom line was 6.5% lower than the year-ago quarter figure.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>