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Invesco (IVZ) Q3 Earnings Top Estimates, Revenues & AUM Rise

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Invesco’s (IVZ - Free Report) third-quarter 2021 adjusted earnings of 77 cents per share outpaced the Zacks Consensus Estimate of 73 cents. The bottom line grew 45.3% from the prior-year quarter.

The stock rallied 2.1% during the pre-market trading, reflecting investors’ optimism over the better-than-expected results. The full-day trading session will display a clearer picture.

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

On a GAAP basis, net income attributable to common shareholders was $330.1 million or 71 cents per share, up from $191.7 million or 41 cents per share a year ago.

Revenues & Expenses Rise

GAAP operating revenues were $1.75 billion, growing 16.9% year over year. The top line handily beat the Zacks Consensus Estimate of $1.33 billion. Adjusted net revenues increased 22.1% to $1.33 billion.

Adjusted operating expenses were $771.9 million, up 13% from the prior-year quarter. The company achieved 74% of the targeted $200 million annualized net savings at the end the reported quarter.

Adjusted operating margin was 42.1%, up from 37.2% a year ago.

AUM Balance Improves

As of Sep 30, 2021, AUM was $1.53 trillion, which soared 25.5% year over year. Average AUM at third-quarter end totaled $1.54 trillion, up 27.7%.

The company witnessed long-term net inflows of $13.3 billion during the quarter, up from $7.8 billion in the prior-year period.

Strong Balance Sheet

As of Sep 30, 2021, cash and cash equivalents were $1.77 billion, up 33% sequentially. Further, long-term debt amounted to $2.08 billion.

As of Sep 30, 2021, the credit facility balance was zero.

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) third-quarter 2021 adjusted earnings of $10.95 per share outpaced the Zacks Consensus Estimate of $9.63. The figure reflects a rise of 18.8% from the year-ago quarter’s number.

Blackstone’s (BX - Free Report) third-quarter 2021 distributable earnings of $1.28 per share comfortably surpassed the Zacks Consensus Estimate of 93 cents. The figure reflects a significant rise from 63 cents recorded in the prior-year quarter.

SEI Investments Co.’s (SEIC - Free Report) third-quarter 2021 earnings of 97 cents per share were in line with the Zacks Consensus Estimate. The bottom line reflected 29% growth from the prior-year quarter.

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