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What's in Store for Affiliated Managers (AMG) in Q1 Earnings?

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Affiliated Managers Group Inc. (AMG - Free Report) is slated to report first-quarter 2021 results on May 3, before the opening bell. Its earnings and revenues in the quarter are expected to have increased 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 and a fall in assets under management (AUM) balance 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 7.4%.

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

Earnings & Sales Projections for Q1

Activities of the company in the first quarter encouraged analysts to revise earnings estimates upward. Thus, the Zacks Consensus Estimate for earnings of $4.26 for the to-be-reported quarter has increased marginally over the past 30 days. Also, the estimate indicates a rise of 34.8% from the year-ago quarter’s reported figure.

The consensus estimate for sales is pegged at $554.6 million, indicating a rise of 9.3% from the year-ago quarter’s reported number.

Other Key Expectations for Q1

Management expects adjusted earnings before interest, tax, depreciation and amortization of $240-$250 million.

Performance fee is anticipated to be $35-$45 million, reflecting seasonality and solid performance of liquid alternative managers. Other economic items are anticipated to be $1 million.

On the cost front, interest expenses are expected to be $27 million, suggesting a relatively stable figure compared with the prior-quarter level. Controlling interest depreciation is expected to remain at the fourth-quarter 2020 level of $2 million.

The company’s share of reported amortization and impairments are expected to be $40 million, indicating a 54% decline sequentially.

Earnings Whispers

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

According to our quantitative model, the chances of Affiliated Managers beating the Zacks Consensus Estimate this time are low. 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 -0.12%.

Zacks Rank: The company currently carries a Zacks Rank #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Release Dates of Other Finance Companies

Main Street Capital Corporation (MAIN - Free Report) and FS KKR Capital Corp. (FSK - Free Report) are scheduled to announce quarterly results on May 6 and May 10, respectively. Gladstone Investment Corporation (GAIN - Free Report) is scheduled to announce the March-end quarter’s results on May 11.

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