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What's in Store for Affiliated Managers (AMG) in Q2 Earnings?

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Affiliated Managers Group Inc. (AMG - Free Report) is slated to report second-quarter 2020 results on Jul 27, before the opening bell. Its earnings and revenues are expected to have declined in the quarter on a year-over-year basis.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results benefited from lower operating expenses and a robust liquidity position. However, lower revenues, a fall in assets under management (AUM) balance, and a decline in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were the undermining factors.

The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average beat being 4.5%.

Affiliated Managers Group, Inc. Price and EPS Surprise

 

Affiliated Managers Group, Inc. Price and EPS Surprise

Affiliated Managers Group, Inc. price-eps-surprise | Affiliated Managers Group, Inc. Quote

Activities of the company in the second quarter encouraged analysts to revise earnings estimates upward. Thus, the Zacks Consensus Estimate for its earnings of $2.70 for the to-be-reported quarter has increased marginally over the past seven days. However, it indicates a decline of 18.9% from the year-ago quarter’s reported figure.

The consensus estimate for sales is pegged at $464.03 million, indicating a fall of 21.6% from the year-ago quarter’s reported number.

Key Expectations for Q2

The consensus estimate for the company’s total AUM is pegged at $601 billion, which indicates a marginal rise from the prior quarter’s reported number.

Management expects adjusted EBITDA of $160 million.

Performance fee is anticipated to be $3 million. Other economic items are anticipated to be $1 million.

On the cost front, interest expenses are expected to be $22 million, suggesting a 10% increase from the prior quarter level.

The company’s share of reported amortization and impairments are expected to be $55 million.

Earnings Whispers

Now, let’s check what our quantitative model predicts.

According to our quantitative model, it cannot be conclusively predicted whether Affiliated Managers 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 a 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 Affiliated Managers is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks That Warrant a Look

Here are some finance stocks that you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat in their upcoming releases.

Franklin Resources, Inc. (BEN - Free Report) is scheduled to release quarterly results on Jul 28. The company has an Earnings ESP of +5.61% and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

UMB Financial Corporation (UMBF - Free Report) is scheduled to release quarterly results on Jul 28. The company currently has an Earnings ESP of +2.22% and a Zacks Rank of 3.

The Earnings ESP for Moody’s Corporation (MCO - Free Report) is +7.17% and it carries a Zacks Rank of 3 at present. The company is slated to report quarterly numbers on Jul 30.

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