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Artisan Partners (APAM) Q4 Earnings Top Estimates, AUM Rises
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Artisan Partners Asset Management (APAM - Free Report) fourth-quarter 2020 adjusted earnings came in at $1.06 per share, surpassing the Zacks Consensus Estimate of $1.01. However, the bottom line was 41.3% lower than the year-ago quarter figure.
Results were supported by rise in revenues. Also, higher assets under management (AUM) and net inflows acted as tailwinds. However, higher expenses remained an undermining factor.
Net income available to common stockholders (GAAP basis) was $73.1 million or $1.15 per share, up from $44.5 million or 76 cents per share in the prior-year quarter.
In 2020, earnings of $3.40 per share beat the consensus estimate of $3.38 and rose 28.3% year over year. Net income available to common shareholders of $212.6 million increased 35.8% from 2019.
Revenues Climb, Expenses Increase
In 2020, total revenues climbed 12.6% year over year to $899.6 million. Also, the top line surpassed the consensus estimate of $896.5 million.
Revenues came in at $261.1 million, up 25.3% from the year-ago quarter. The rise primarily resulted from higher performance fees and AUM balance. Also, the top line surpassed the Zacks Consensus Estimate of $258 million.
Management fees earned from the Artisan Funds & Artisan Global Funds were up 24% year over year to $157 million. Management fees earned from Separate accounts increased 23% to $100.6 million.
Total expenses amounted to $147.6 million, up 14.4% year over year. The rise was largely due to higher employee compensation and benefits expenses.
Operating income was $11.6 million, up considerably from $4.3 million in the year-ago quarter.
AUM Increases on Net Inflows
As of Dec 31, 2020, AUM was $157.8 billion, up 30.4% from the year-earlier quarter. The company witnessed net inflows of $2.1 billion against outflows of $445 million a year ago.
Average AUM totaled $145 billion, up 25.2%.
Balance Sheet Position
Cash and other investments were $155 million compared with $134.6 million as of Dec 31, 2019. Also, the company’s debt leverage ratio, calculated in accordance with its loan agreements, was 0.5 as of Dec 31, 2020.
Capital Deployment Update
The company’s board of directors declared a variable quarterly dividend of 97 cents per share of Class A common stock along with a special dividend of 31 cents per share. The combined amount will be paid on Feb 26, 2021 to shareholders on record as of the close of business on Feb 12.
Our Viewpoint
Artisan Partners’ diverse investment products are expected to support growth. Also, rise in AUM given the inflows supports top-line expansion. Moreover, prudent cost management aids profitability to some extent.
Artisan Partners Asset Management Inc. Price, Consensus and EPS Surprise
Federated Hermes (FHI - Free Report) reported fourth-quarter 2020 earnings per share of 93 cents, outpacing the Zacks Consensus Estimate of 80 cents. The figure also compares favorably with the prior-year quarter earnings of 81 cents.
T. Rowe Price (TROW - Free Report) delivered fourth-quarter 2020 adjusted earnings per share of $2.89, which outpaced the Zacks Consensus Estimate of $2.68. The reported figure also climbed 42.4%, year on year.
Cohen & Steers’ (CNS - Free Report) fourth-quarter 2020 adjusted earnings of 76 cents per share surpassed the Zacks Consensus Estimate of 67 cents. Moreover, the bottom line was 2.7% higher than the year-ago reported figure.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Artisan Partners (APAM) Q4 Earnings Top Estimates, AUM Rises
Artisan Partners Asset Management (APAM - Free Report) fourth-quarter 2020 adjusted earnings came in at $1.06 per share, surpassing the Zacks Consensus Estimate of $1.01. However, the bottom line was 41.3% lower than the year-ago quarter figure.
Results were supported by rise in revenues. Also, higher assets under management (AUM) and net inflows acted as tailwinds. However, higher expenses remained an undermining factor.
Net income available to common stockholders (GAAP basis) was $73.1 million or $1.15 per share, up from $44.5 million or 76 cents per share in the prior-year quarter.
In 2020, earnings of $3.40 per share beat the consensus estimate of $3.38 and rose 28.3% year over year. Net income available to common shareholders of $212.6 million increased 35.8% from 2019.
Revenues Climb, Expenses Increase
In 2020, total revenues climbed 12.6% year over year to $899.6 million. Also, the top line surpassed the consensus estimate of $896.5 million.
Revenues came in at $261.1 million, up 25.3% from the year-ago quarter. The rise primarily resulted from higher performance fees and AUM balance. Also, the top line surpassed the Zacks Consensus Estimate of $258 million.
Management fees earned from the Artisan Funds & Artisan Global Funds were up 24% year over year to $157 million. Management fees earned from Separate accounts increased 23% to $100.6 million.
Total expenses amounted to $147.6 million, up 14.4% year over year. The rise was largely due to higher employee compensation and benefits expenses.
Operating income was $11.6 million, up considerably from $4.3 million in the year-ago quarter.
AUM Increases on Net Inflows
As of Dec 31, 2020, AUM was $157.8 billion, up 30.4% from the year-earlier quarter. The company witnessed net inflows of $2.1 billion against outflows of $445 million a year ago.
Average AUM totaled $145 billion, up 25.2%.
Balance Sheet Position
Cash and other investments were $155 million compared with $134.6 million as of Dec 31, 2019. Also, the company’s debt leverage ratio, calculated in accordance with its loan agreements, was 0.5 as of Dec 31, 2020.
Capital Deployment Update
The company’s board of directors declared a variable quarterly dividend of 97 cents per share of Class A common stock along with a special dividend of 31 cents per share. The combined amount will be paid on Feb 26, 2021 to shareholders on record as of the close of business on Feb 12.
Our Viewpoint
Artisan Partners’ diverse investment products are expected to support growth. Also, rise in AUM given the inflows supports top-line expansion. Moreover, prudent cost management aids profitability to some extent.
Artisan Partners Asset Management Inc. Price, Consensus and EPS Surprise
Artisan Partners Asset Management Inc. price-consensus-eps-surprise-chart | Artisan Partners Asset Management Inc. Quote
Currently, Artisan Partners sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Asset Managers
Federated Hermes (FHI - Free Report) reported fourth-quarter 2020 earnings per share of 93 cents, outpacing the Zacks Consensus Estimate of 80 cents. The figure also compares favorably with the prior-year quarter earnings of 81 cents.
T. Rowe Price (TROW - Free Report) delivered fourth-quarter 2020 adjusted earnings per share of $2.89, which outpaced the Zacks Consensus Estimate of $2.68. The reported figure also climbed 42.4%, year on year.
Cohen & Steers’ (CNS - Free Report) fourth-quarter 2020 adjusted earnings of 76 cents per share surpassed the Zacks Consensus Estimate of 67 cents. Moreover, the bottom line was 2.7% higher than the year-ago reported figure.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>