Invesco’s (IVZ - Free Report) third-quarter 2022 adjusted earnings of 34 cents per share have missed the Zacks Consensus Estimate of 43 cents by a significant margin. The bottom line plunged 55.8% from the prior-year quarter. Our estimate for earnings was 49 cents.
Shares of IVZ lost 1.1% in pre-market trading in response to the lower-than-expected quarterly performance. The full-day trading session will display a clearer picture.
Results have been adversely impacted by lower assets under management (AUM) balance and long-term outflows, which hurt revenues. However, a decline in operating expenses was a tailwind.
On a GAAP basis, net income attributable to common shareholders was $177.4 million or 39 cents per share, down from $330.1 million or 71 cents per share a year ago.
Revenues & Expenses Decline
Adjusted net revenues were $1.11 billion, falling 16.7% year over year. The top line lagged the Zacks Consensus Estimate of $1.14 billion. Our estimate for revenues was $1.16 billion.
Adjusted operating expenses were $741.2 million, down 4% year over year.
The adjusted operating margin was 33.3%, down from 42.1% a year ago.
AUM Balance Falls
As of Sep 30, 2022, AUM was $1.32 trillion, which declined 13.4% year over year. Average AUM at the third-quarter end totaled $1.42 trillion, down 8.1%.
The company witnessed long-term net outflows of $7.7 billion in the quarter.
Balance Sheet Strong
As of Sep 30, 2022, cash and cash equivalents were $1.02 billion compared with $1.90 billion as of Dec 31, 2021.
Long-term debt amounted to $1.49 billion. The credit facility balance was $0 as of Sep 30, 2022.
Our View
Invesco remains well-poised to benefit from its global footprint, product offerings and strategic buyouts. However, elevated expenses, a challenging market environment and high debt levels are major near-term concerns.
Currently, IVZ carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Date of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) third-quarter 2022 adjusted earnings of $9.55 per share surpassed the Zacks Consensus Estimate of $7.93. The figure reflects a decrease of 15.8% from the year-ago quarter.
BLK’s results benefited from a decline in expenses. However, lower revenues and AUM balance were major headwinds.
Virtus Investment Partners, Inc. (VRTS - Free Report) is slated to report third-quarter 2022 results on Oct 26.
Over the past seven days, the Zacks Consensus Estimate for Virtus Investment’s quarterly earnings has moved marginally lower to $6.39. This indicates a 34.2% fall from the prior-year quarter.
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Invesco’s (IVZ - Free Report) third-quarter 2022 adjusted earnings of 34 cents per share have missed the Zacks Consensus Estimate of 43 cents by a significant margin. The bottom line plunged 55.8% from the prior-year quarter. Our estimate for earnings was 49 cents.
Shares of IVZ lost 1.1% in pre-market trading in response to the lower-than-expected quarterly performance. The full-day trading session will display a clearer picture.
Results have been adversely impacted by lower assets under management (AUM) balance and long-term outflows, which hurt revenues. However, a decline in operating expenses was a tailwind.
On a GAAP basis, net income attributable to common shareholders was $177.4 million or 39 cents per share, down from $330.1 million or 71 cents per share a year ago.
Revenues & Expenses Decline
Adjusted net revenues were $1.11 billion, falling 16.7% year over year. The top line lagged the Zacks Consensus Estimate of $1.14 billion. Our estimate for revenues was $1.16 billion.
Adjusted operating expenses were $741.2 million, down 4% year over year.
The adjusted operating margin was 33.3%, down from 42.1% a year ago.
AUM Balance Falls
As of Sep 30, 2022, AUM was $1.32 trillion, which declined 13.4% year over year. Average AUM at the third-quarter end totaled $1.42 trillion, down 8.1%.
The company witnessed long-term net outflows of $7.7 billion in the quarter.
Balance Sheet Strong
As of Sep 30, 2022, cash and cash equivalents were $1.02 billion compared with $1.90 billion as of Dec 31, 2021.
Long-term debt amounted to $1.49 billion. The credit facility balance was $0 as of Sep 30, 2022.
Our View
Invesco remains well-poised to benefit from its global footprint, product offerings and strategic buyouts. However, elevated expenses, a challenging market environment and high debt levels are major near-term concerns.
Currently, IVZ carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Date of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) third-quarter 2022 adjusted earnings of $9.55 per share surpassed the Zacks Consensus Estimate of $7.93. The figure reflects a decrease of 15.8% from the year-ago quarter.
BLK’s results benefited from a decline in expenses. However, lower revenues and AUM balance were major headwinds.
Virtus Investment Partners, Inc. (VRTS - Free Report) is slated to report third-quarter 2022 results on Oct 26.
Over the past seven days, the Zacks Consensus Estimate for Virtus Investment’s quarterly earnings has moved marginally lower to $6.39. This indicates a 34.2% fall from the prior-year quarter.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
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