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Cohen & Steers (CNS) Q2 Earnings Miss, Revenues & AUM Fall

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Cohen & Steers’ (CNS - Free Report) second-quarter 2020 adjusted earnings of 54 cents per share missed the Zacks Consensus Estimate of 55 cents. Moreover, the bottom line was 12.9% lower than the year-ago reported figure.

Results were primarily hurt by a decline in revenues, partly offset by lower expenses. Moreover, despite net inflows, the company recorded a fall in assets under management (AUM) balance.

Net income available to common stockholders (on a GAAP basis) was $28.5 million or 59 cents per share, down from $31.3 million or 65 cents in the prior-year quarter.

Revenues & Expenses Decline

Revenues (GAAP basis) were $94.1 million, down 7.6% from the year-ago quarter. A decrease in all three components of revenues drove the downside.

Total expenses (GAAP basis) amounted to $58.8 million, down 7.7% year over year. All cost components, except for depreciation and amortization, witnessed a fall.

Operating income (GAAP basis) was $35.3 million, down 7.4% year over year.

Total non-operating income was $8 million, up 75.3% from the year-ago quarter.

AUM Falls

As of Jun 30, 2020, AUM was $66.3 billion, down marginally from the year-earlier quarter. The company’s net inflows were $3.4 billion in the reported quarter.

Average AUM totaled $62.2 billion, down 6.6% from the prior-year quarter.

Our Take

The company’s diverse product offerings and investment strategies will likely support top-line growth. Moreover, driven by a solid liquidity position, its capital deployments look sustainable.

Cohen Steers Inc Price, Consensus and EPS Surprise

 

Cohen  Steers Inc Price, Consensus and EPS Surprise

Cohen Steers Inc price-consensus-eps-surprise-chart | Cohen Steers Inc Quote

Currently, Cohen & Steers sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance & Earnings Release Dates of Other Asset Managers

BlackRock, Inc.’s (BLK - Free Report) second-quarter 2020 adjusted earnings of $7.85 per share hugely surpassed the Zacks Consensus Estimate of $6.90. The figure reflects a rise of 22.5% from the year-ago quarter’s number.

Affiliated Managers Group, Inc. (AMG - Free Report) and Waddell & Reed Financial, Inc. are scheduled to announce quarterly results on Jul 27 and Jul 28, respectively.

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