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Artisan Partners (APAM) Q2 Earnings Beat Estimates, AUM Up
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Artisan Partners Asset Management’s (APAM - Free Report) second-quarter 2021 adjusted earnings came in at $1.28 per share, surpassing the Zacks Consensus Estimate of $1.21. The bottom line soared 80% from the year-ago quarter figure.
Results were supported by rise in revenues and higher assets under management (AUM). However, increase in expenses was an undermining factor.
Net income available to common stockholders (GAAP basis) was $88.2 million or $1.33 per share, up from $46.2 million or 72 cents per share in the prior-year quarter.
Revenues Climb, Expenses Increase
Revenues came in at $304.9 million, jumping 50% from the year-ago quarter. The rise primarily resulted from higher average AUM balance. The top line surpassed the Zacks Consensus Estimate of $302.4 million.
Management fees earned from the Artisan Funds & Artisan Global Funds surged 61% year over year to $188.7 million. Management fees earned from Separate accounts grew 44% to $112.1 million.
Total expenses amounted to $167.1 million, up 32% year over year. The rise was largely due to higher employee compensation and benefits expenses.
Operating income was $137.8 million, up 80% year over year.
AUM Increases on Net Inflows
As of Jun 30, 2021, AUM was $175.2 billion, up 45% from the year-earlier quarter. The company witnessed net inflows of $6.6 billion and $48.7 billion of investment returns during the second quarter.
Average AUM totaled $170.5 billion, up 56%.
Balance Sheet Position
Cash and other investments were $228.7 million compared with $155 million as of Dec 31, 2020. The company’s debt leverage ratio, calculated in accordance with its loan agreements, was 0.4 as of Jun 30, 2021.
Total stockholders’ equity was $240.4 million as of Jun 30, 2021, compared with $191.0 million on Dec 31, 2020.
Our View
Artisan Partners’ diverse investment products are expected to support growth. 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 and EPS Surprise
BlackRock’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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Artisan Partners (APAM) Q2 Earnings Beat Estimates, AUM Up
Artisan Partners Asset Management’s (APAM - Free Report) second-quarter 2021 adjusted earnings came in at $1.28 per share, surpassing the Zacks Consensus Estimate of $1.21. The bottom line soared 80% from the year-ago quarter figure.
Results were supported by rise in revenues and higher assets under management (AUM). However, increase in expenses was an undermining factor.
Net income available to common stockholders (GAAP basis) was $88.2 million or $1.33 per share, up from $46.2 million or 72 cents per share in the prior-year quarter.
Revenues Climb, Expenses Increase
Revenues came in at $304.9 million, jumping 50% from the year-ago quarter. The rise primarily resulted from higher average AUM balance. The top line surpassed the Zacks Consensus Estimate of $302.4 million.
Management fees earned from the Artisan Funds & Artisan Global Funds surged 61% year over year to $188.7 million. Management fees earned from Separate accounts grew 44% to $112.1 million.
Total expenses amounted to $167.1 million, up 32% year over year. The rise was largely due to higher employee compensation and benefits expenses.
Operating income was $137.8 million, up 80% year over year.
AUM Increases on Net Inflows
As of Jun 30, 2021, AUM was $175.2 billion, up 45% from the year-earlier quarter. The company witnessed net inflows of $6.6 billion and $48.7 billion of investment returns during the second quarter.
Average AUM totaled $170.5 billion, up 56%.
Balance Sheet Position
Cash and other investments were $228.7 million compared with $155 million as of Dec 31, 2020. The company’s debt leverage ratio, calculated in accordance with its loan agreements, was 0.4 as of Jun 30, 2021.
Total stockholders’ equity was $240.4 million as of Jun 30, 2021, compared with $191.0 million on Dec 31, 2020.
Our View
Artisan Partners’ diverse investment products are expected to support growth. 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 and EPS Surprise
Artisan Partners Asset Management Inc. price-eps-surprise | Artisan Partners Asset Management Inc. Quote
Currently, Artisan Partners 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’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.