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Affiliated Managers (AMG) Q1 Earnings Beat Estimates, AUM Up

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Affiliated Managers Group Inc.’s (AMG - Free Report) first-quarter 2021 economic earnings of $4.28 per share surpassed the Zacks Consensus Estimate of $4.26. Also, the bottom line grew 34.5% year over year.

Results reflect improvement in revenues and growth in assets under management (AUM) balance. Further, the company had a robust liquidity position. However, higher operating expenses posed a headwind.

Economic net income was $184.8 million, up 22.1% from the prior-year quarter.

Revenues & AUM Rise, Expenses Up

Total revenues improved 10.2% year over year to $559.1 million. Further, the top line beat the Zacks Consensus Estimate of $554.6 million.

Adjusted EBITDA was $246.8 million, jumping 23.2% from the year-ago quarter.

Total expenses increased 6.8% to $378.5 million. Higher compensation and related expenses, and interest expenses mainly led to the rise.

As of Mar 31, 2021, total AUM was $738 billion, up 23.2% year over year. Net client cash outflows of $7.5 billion during the quarter hurt AUM.

Capital & Liquidity Position Decent

As of Mar 31, 2021, Affiliated Managers had $766.2 billion in cash and cash equivalents compared with $1.04 billion on Dec 31, 2020. The company had $2.30 billion of debt, which declined marginally from Dec 31, 2020 level.

Shareholders’ equity as of Mar 31, 2021 was $2.7 billion compared with $2.8 billion as of Dec 31, 2020.

Share Repurchase Update

During the first quarter, the company repurchased shares worth nearly $210 million.

Our Take

Affiliated Managers is well positioned for growth on the back of successful partnerships and global distribution capability, along with a diverse product mix. However, muted revenue growth and decline in AUM balance remain major concerns.

Affiliated Managers currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

Performance of Other Asset Managers

BlackRock, Inc.’s (BLK - Free Report) first-quarter 2021 adjusted earnings of $7.77 per share outpaced the Zacks Consensus Estimate of $7.64. The figure reflects a rise of 17.7% from the year-ago quarter’s number.

Blackstone’s (BX - Free Report) first quarter 2021 distributable earnings of 96 cents per share surpassed the Zacks Consensus Estimate of 72 cents. Moreover, the figure represents a significant rise from 46 cents recorded in the prior-year quarter.

SEI Investments Co.’s (SEIC - Free Report) earnings of 89 cents per share in the first quarter 2021 missed the Zacks Consensus Estimate by a penny. However, the bottom line reflected 24% growth from the prior-year quarter.

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