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Affiliated Managers (AMG) Q2 Earnings Beat, Revenues & AUM Up
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Affiliated Managers Group Inc.’s (AMG - Free Report) second-quarter 2021 economic earnings of $4.03 per share surpassed the Zacks Consensus Estimate of $3.82. The bottom line grew 47.1% year over year.
Results were aided by an improvement in revenues, growth in assets under management (AUM) balance and lower expenses. Further, the company had a robust liquidity position.
Economic net income was $171.2 million, up 32.1% from the prior-year quarter.
Revenues & AUM Improve, Expenses Decline
Total revenues improved 24.5% year over year to $586.3 million. However, the top line lagged the Zacks Consensus Estimate of $590.7 million.
Adjusted EBITDA was $227.3 million, jumping 40.2% from the year-ago quarter.
Total expenses declined 4.8% year over year to $389.9 million. A drastic decline in intangible amortization and impairment costs primarily led to the fall.
As of Jun 30, 2021, total AUM was $755.7 billion, up 18.4% year over year. Net client cash outflows in the quarter were $8.1 billion.
Capital & Liquidity Position Decent
As of Jun 30, 2021, Affiliated Managers had $777.9 billion in cash and cash equivalents compared with $1.04 billion as of Dec 31, 2020. The company had $2.30 billion of debt, which declined marginally from the Dec 31, 2020 level.
Shareholders’ equity as of Jun 30, 2021, was $2.61 billion compared with $2.78 billion as of Dec 31, 2020.
Share Repurchase Update
In the reported quarter, the company repurchased shares worth nearly $80 million.
Our Take
Affiliated Managers’ deal to acquire a majority equity stake in Parnassus Investments is expected to increase its ESG-focused AUM balance. The company remains well-positioned for growth on the back of successful partnerships and global distribution capability along with a diverse product mix.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
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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Affiliated Managers (AMG) Q2 Earnings Beat, Revenues & AUM Up
Affiliated Managers Group Inc.’s (AMG - Free Report) second-quarter 2021 economic earnings of $4.03 per share surpassed the Zacks Consensus Estimate of $3.82. The bottom line grew 47.1% year over year.
Results were aided by an improvement in revenues, growth in assets under management (AUM) balance and lower expenses. Further, the company had a robust liquidity position.
Economic net income was $171.2 million, up 32.1% from the prior-year quarter.
Revenues & AUM Improve, Expenses Decline
Total revenues improved 24.5% year over year to $586.3 million. However, the top line lagged the Zacks Consensus Estimate of $590.7 million.
Adjusted EBITDA was $227.3 million, jumping 40.2% from the year-ago quarter.
Total expenses declined 4.8% year over year to $389.9 million. A drastic decline in intangible amortization and impairment costs primarily led to the fall.
As of Jun 30, 2021, total AUM was $755.7 billion, up 18.4% year over year. Net client cash outflows in the quarter were $8.1 billion.
Capital & Liquidity Position Decent
As of Jun 30, 2021, Affiliated Managers had $777.9 billion in cash and cash equivalents compared with $1.04 billion as of Dec 31, 2020. The company had $2.30 billion of debt, which declined marginally from the Dec 31, 2020 level.
Shareholders’ equity as of Jun 30, 2021, was $2.61 billion compared with $2.78 billion as of Dec 31, 2020.
Share Repurchase Update
In the reported quarter, the company repurchased shares worth nearly $80 million.
Our Take
Affiliated Managers’ deal to acquire a majority equity stake in Parnassus Investments is expected to increase its ESG-focused AUM balance. The company remains well-positioned for growth on the back of successful partnerships and global distribution capability along with a diverse product mix.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
Affiliated Managers Group, Inc. price-consensus-eps-surprise-chart | Affiliated Managers Group, Inc. Quote
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) 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.