Invesco’s (IVZ - Free Report) fourth-quarter 2022 adjusted earnings of 39 cents per share surpassed the Zacks Consensus Estimate of 36 cents. The bottom line, however, plunged 54.7% from the prior-year quarter. Our estimate for earnings was 33 cents.
Results benefited from a decline in operating expenses. On the other hand, lower assets under management (AUM) balance and long-term outflows hurt revenues.
On a GAAP basis, net income attributable to common shareholders was $187.8 million or 41 cents per share, down from $426.8 million or 92 cents per share a year ago.
In 2022, adjusted earnings per share of $1.68 beat the consensus estimate by a penny but declined 45.6% year over year. Our estimate for earnings was $1.62. Net income attributable to common shareholders (GAAP) was $683.9 million or $1.49 per share, down from $1.39 billion or $2.99 per share in 2021.
Revenues & Expenses Decline
Adjusted quarterly net revenues were $1.11 billion, falling 19.3% year over year. The top line, however, outpaced the Zacks Consensus Estimate of $1.06 billion. Our estimate for net revenues was $1.05 billion.
In 2022, adjusted net revenues declined 11.7% from 2021 to $4.65 billion. The top line also lagged the consensus estimate of $5.13 billion. Our estimate for net revenues was $4.59 billion.
Adjusted operating expenses were $769.2 million, down 3.4% year over year.
The adjusted operating margin was 30.6%, down from 42% a year ago.
AUM Balance Falls
As of Dec 31, 2022, AUM was $1.41 trillion, which declined 12.5% year over year. Average AUM at the fourth-quarter end totaled $1.39 trillion, down 12.1%.
The company witnessed long-term net outflows of $3.2 billion in the quarter.
Balance Sheet Strong
As of Dec 31, 2022, cash and cash equivalents were $1.23 billion compared with $1.90 billion as of Dec 31, 2021.
Long-term debt amounted to $1.49 billion. The credit facility balance was nil as of Dec 31, 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 #3 (Hold). 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) fourth-quarter 2022 adjusted earnings of $8.93 per share surpassed the Zacks Consensus Estimate of $7.99. The figure reflects a decrease of 16.4% from the year-ago quarter.
The quarterly results benefited from a decline in expenses. However, lower revenues and assets under management (AUM) balance were the major headwinds for BLK.
Ameriprise Financial, Inc. (AMP - Free Report) is slated to report fourth-quarter 2022 results on Jan 25.
Over the past 30 days, the Zacks Consensus Estimate for AMP’s quarterly earnings has moved marginally lower to $6.35. Nonetheless, it indicates a 3.3% rise from the prior-year quarter.
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Invesco’s (IVZ - Free Report) fourth-quarter 2022 adjusted earnings of 39 cents per share surpassed the Zacks Consensus Estimate of 36 cents. The bottom line, however, plunged 54.7% from the prior-year quarter. Our estimate for earnings was 33 cents.
Results benefited from a decline in operating expenses. On the other hand, lower assets under management (AUM) balance and long-term outflows hurt revenues.
On a GAAP basis, net income attributable to common shareholders was $187.8 million or 41 cents per share, down from $426.8 million or 92 cents per share a year ago.
In 2022, adjusted earnings per share of $1.68 beat the consensus estimate by a penny but declined 45.6% year over year. Our estimate for earnings was $1.62. Net income attributable to common shareholders (GAAP) was $683.9 million or $1.49 per share, down from $1.39 billion or $2.99 per share in 2021.
Revenues & Expenses Decline
Adjusted quarterly net revenues were $1.11 billion, falling 19.3% year over year. The top line, however, outpaced the Zacks Consensus Estimate of $1.06 billion. Our estimate for net revenues was $1.05 billion.
In 2022, adjusted net revenues declined 11.7% from 2021 to $4.65 billion. The top line also lagged the consensus estimate of $5.13 billion. Our estimate for net revenues was $4.59 billion.
Adjusted operating expenses were $769.2 million, down 3.4% year over year.
The adjusted operating margin was 30.6%, down from 42% a year ago.
AUM Balance Falls
As of Dec 31, 2022, AUM was $1.41 trillion, which declined 12.5% year over year. Average AUM at the fourth-quarter end totaled $1.39 trillion, down 12.1%.
The company witnessed long-term net outflows of $3.2 billion in the quarter.
Balance Sheet Strong
As of Dec 31, 2022, cash and cash equivalents were $1.23 billion compared with $1.90 billion as of Dec 31, 2021.
Long-term debt amounted to $1.49 billion. The credit facility balance was nil as of Dec 31, 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 #3 (Hold). 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) fourth-quarter 2022 adjusted earnings of $8.93 per share surpassed the Zacks Consensus Estimate of $7.99. The figure reflects a decrease of 16.4% from the year-ago quarter.
The quarterly results benefited from a decline in expenses. However, lower revenues and assets under management (AUM) balance were the major headwinds for BLK.
Ameriprise Financial, Inc. (AMP - Free Report) is slated to report fourth-quarter 2022 results on Jan 25.
Over the past 30 days, the Zacks Consensus Estimate for AMP’s quarterly earnings has moved marginally lower to $6.35. Nonetheless, it indicates a 3.3% rise from the prior-year quarter.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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