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Invesco (IVZ) Q2 Earnings Beat Estimates, Revenues & AUM Up

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Invesco’s (IVZ - Free Report) second-quarter 2021 adjusted earnings of 78 cents per share surpassed the Zacks Consensus Estimate of 71 cents. The bottom line grew substantially from 35 cents per share in the prior-year quarter.

Results reflect improvement in revenues and solid growth in assets under management (AUM) balance. However, rise in operating expenses was a headwind.

On a GAAP basis, net income attributable to common shareholders was $368.3 million or 79 cents per share, up substantially from $40.5 million or 9 cents per share a year ago.

Revenues & Expenses Rise

GAAP operating revenues were $1.72 billion, which jumped 21.3% year over year. The top line handily beat the Zacks Consensus Estimate of $1.31 billion. Adjusted net revenues increased 26% to $1.3 billion.

Adjusted operating expenses were $762.4 million, up 13% from the prior-year quarter.

Adjusted operating margin was 41.5%, up from 34.8% a year ago.

AUM Balance Improves

As of Jun 30, 2021, AUM was $1.53 trillion, which surged 33.2% year over year. Average AUM at second-quarter end totaled $1.48 trillion, up 32.3%.

The company witnessed long-term net inflows of $31.1 billion during the quarter against outflows of $14.2 billion in the prior-year period.

Strong Balance Sheet

As of Jun 30, 2021, cash and cash equivalents were $1.33 billion, up 15% sequentially. Further, long-term debt amounted to $2.08 billion.

As of Jun 30, 2021, the credit facility balance was zero. The company had renegotiated its $1.5 billion credit facility in April, thereby extending the maturity date to April 2026.

Our Take

Invesco remains well poised to benefit from its global footprint, product offerings and strategic buyouts. However, elevated expenses and high debt level are major concerns.
 

Invesco Ltd. Price, Consensus and EPS Surprise

Invesco Ltd. Price, Consensus and EPS Surprise

Invesco Ltd. price-consensus-eps-surprise-chart | Invesco Ltd. Quote

Currently, Invesco carries a Zacks Rank #3 (Hold). 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) second-quarter 2021 adjusted earnings of $10.03 per share outpaced the Zacks Consensus Estimate of $9.24. The figure reflects a rise of 27.8 % from the year-ago quarter’s number.

Blackstone’s (BX - Free Report) second-quarter 2021 distributable earnings of 82 cents per share surpassed the Zacks Consensus Estimate of 80 cents. The figure reflects a rise of 90.7% from the prior-year quarter.

SEI Investments Co.’s (SEIC - Free Report) second-quarter 2021 earnings of 93 cents per share beat the Zacks Consensus Estimate by a penny. The bottom line reflected 37% growth from the prior-year quarter.


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