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What's in the Cards for AllianceBernstein's (AB) Q2 Earnings?
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AllianceBernstein Holding L.P. (AB - Free Report) is scheduled to announce second-quarter 2020 results on Jul 23, before market open. Its revenues and earnings are expected to have witnessed improvement in the quarter on a year-over-year basis.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were driven by a rise in revenues, partly offset by higher expenses. However, the company recorded a decline in assets under management (AUM) balance due to net outflows.
AllianceBernstein has a decent earnings surprise history. Its surpassed have surpassed the Zacks Consensus Estimate in two and met in one of the trailing four quarters, the average beat being 4.5%.
AllianceBernstein Holding L.P. Price and EPS Surprise
Activities of the company in the second quarter encouraged analysts to revise estimates upward. As a result, the Zacks Consensus Estimate for its earnings of 62 cents for the to-be-reported quarter has been revised 10.7% upward over the past 30 days. The figure indicates year-over-year growth of 10.7%.
The consensus estimate for sales is pegged at $727.5 million, indicating a rise of 1.8% from the year-ago quarter’s reported number.
Now, let’s check the factors that are likely to have influenced the company’s second-quarter performance.
Factors at Play
Given the continued uncertainty resulting from the coronavirus outbreak, the second quarter witnessed significant market volatility along with increased client activity. Moreover, mostly the quarter witnessed asset inflows, which resulted in an increase in AUM.
In fact, per the monthly metrics data published by AllianceBernstein, its preliminary AUM of $600 billion as of Jun 30, 2020, was up 10.7% from Mar 31, 2020. Thus, driven by a rise in total AUM, the company’s revenues are expected to have improved in the quarter.
However, the Zacks Consensus Estimate for the company’s base fees of $578 million indicates a decline of 5.9% from the previous quarter.
The consensus estimate for performance fee is pegged at $4 million, suggesting a decline of 50.9% sequentially.
The consensus estimate for Bernstein research service fee also shows that this component is likely to have declined in the to-be-reported quarter. The consensus estimate for the same is pegged at $101 million, indicating a fall of 21.7% from the previous quarter.
On the cost front, expenses are expected to have remained manageable. As most of the employees worked from home in the second quarter, overhead expenses are expected to have declined. However, there might have been a slight increase in costs due to investments in technology upgrades.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether AllianceBernstein will be able to beat the Zacks Consensus Estimate this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for AllianceBernstein is 0.00%.
Zacks Rank: The company currently sports a Zacks Rank #1 (Strong Buy). While this increases the predictive power of ESP, we also need a positive ESP to be confident of an earnings surprise call.
Stocks to Consider
Here are some finance stocks that you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases, per our model.
East West Bancorp, Inc. (EWBC - Free Report) is scheduled to report quarterly earnings on Jul 23. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +3.47%.
SVB Financial Group is also set to report quarterly earnings on Jul 23. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +6.71%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
What's in the Cards for AllianceBernstein's (AB) Q2 Earnings?
AllianceBernstein Holding L.P. (AB - Free Report) is scheduled to announce second-quarter 2020 results on Jul 23, before market open. Its revenues and earnings are expected to have witnessed improvement in the quarter on a year-over-year basis.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were driven by a rise in revenues, partly offset by higher expenses. However, the company recorded a decline in assets under management (AUM) balance due to net outflows.
AllianceBernstein has a decent earnings surprise history. Its surpassed have surpassed the Zacks Consensus Estimate in two and met in one of the trailing four quarters, the average beat being 4.5%.
AllianceBernstein Holding L.P. Price and EPS Surprise
AllianceBernstein Holding L.P. price-eps-surprise | AllianceBernstein Holding L.P. Quote
Activities of the company in the second quarter encouraged analysts to revise estimates upward. As a result, the Zacks Consensus Estimate for its earnings of 62 cents for the to-be-reported quarter has been revised 10.7% upward over the past 30 days. The figure indicates year-over-year growth of 10.7%.
The consensus estimate for sales is pegged at $727.5 million, indicating a rise of 1.8% from the year-ago quarter’s reported number.
Now, let’s check the factors that are likely to have influenced the company’s second-quarter performance.
Factors at Play
Given the continued uncertainty resulting from the coronavirus outbreak, the second quarter witnessed significant market volatility along with increased client activity. Moreover, mostly the quarter witnessed asset inflows, which resulted in an increase in AUM.
In fact, per the monthly metrics data published by AllianceBernstein, its preliminary AUM of $600 billion as of Jun 30, 2020, was up 10.7% from Mar 31, 2020. Thus, driven by a rise in total AUM, the company’s revenues are expected to have improved in the quarter.
However, the Zacks Consensus Estimate for the company’s base fees of $578 million indicates a decline of 5.9% from the previous quarter.
The consensus estimate for performance fee is pegged at $4 million, suggesting a decline of 50.9% sequentially.
The consensus estimate for Bernstein research service fee also shows that this component is likely to have declined in the to-be-reported quarter. The consensus estimate for the same is pegged at $101 million, indicating a fall of 21.7% from the previous quarter.
On the cost front, expenses are expected to have remained manageable. As most of the employees worked from home in the second quarter, overhead expenses are expected to have declined. However, there might have been a slight increase in costs due to investments in technology upgrades.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether AllianceBernstein will be able to beat the Zacks Consensus Estimate this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for AllianceBernstein is 0.00%.
Zacks Rank: The company currently sports a Zacks Rank #1 (Strong Buy). While this increases the predictive power of ESP, we also need a positive ESP to be confident of an earnings surprise call.
Stocks to Consider
Here are some finance stocks that you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases, per our model.
Associated BancCorp (ASB - Free Report) is slated to release quarterly results on Jul 23. The company currently has an Earnings ESP of +7.31% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
East West Bancorp, Inc. (EWBC - Free Report) is scheduled to report quarterly earnings on Jul 23. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +3.47%.
SVB Financial Group is also set to report quarterly earnings on Jul 23. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +6.71%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>