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Artisan Partners (APAM) Q3 Earnings Top Estimates, AUM Rises
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Artisan Partners Asset Management Inc.’s (APAM - Free Report) third-quarter 2021 adjusted net income per adjusted share was $1.33, surpassing the Zacks Consensus Estimate of $1.27. The bottom line soared from 90 cents in the year-ago quarter.
Results were supported by a rise in revenues and higher assets under management (AUM). However, an increase in expenses was an undermining factor.
Net income available to common stockholders (GAAP basis) was $86.4 million or $1.30 per share, up from $58.5 million or 93 cents per share in the prior-year quarter.
Revenues Climb, Expenses Increase
Revenues were $316.6 million, jumping 36% from the year-ago quarter. The rise primarily resulted from a higher average AUM balance. The top line surpassed the Zacks Consensus Estimate of $315.4 million.
Management fees earned from the Artisan Funds & Artisan Global Funds rose 41.9% year over year to $199.1 million. Management fees earned from Separate accounts grew 27.1% to $117.1 million.
Total operating expenses amounted to $173.5 million, up 28% year over year. The rise was primarily due to higher incentive compensation and third-party distribution expenses related to increased revenues as well as an increase in compensation and benefits expenses.
Operating income was $143.1 million, up 47% year over year.
AUM Increases on Net Inflows
As of Sep 30, 2021, AUM was $173.6 billion, up 29% from the year-earlier quarter. The company witnessed net client cash inflows of $4.5 billion and $35.5 billion of investment returns in the third quarter.
The average AUM totaled $177.6 billion, up 36% year over year.
Balance Sheet Position Strong
Cash and cash equivalents were $273.3 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 Sep 30, 2021.
Total stockholders’ equity was $271 million as of Sep 30, 2021, compared with $191 million on Dec 31, 2020.
Our View
Artisan Partners’ diverse investment products are expected to support growth. A rise in AUM, given the inflows, supports top-line expansion. Moreover, prudent cost management will aid profitability to some extent.
Artisan Partners Asset Management Inc. Price, Consensus and EPS Surprise
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.
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.
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.
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Artisan Partners (APAM) Q3 Earnings Top Estimates, AUM Rises
Artisan Partners Asset Management Inc.’s (APAM - Free Report) third-quarter 2021 adjusted net income per adjusted share was $1.33, surpassing the Zacks Consensus Estimate of $1.27. The bottom line soared from 90 cents in the year-ago quarter.
Results were supported by a rise in revenues and higher assets under management (AUM). However, an increase in expenses was an undermining factor.
Net income available to common stockholders (GAAP basis) was $86.4 million or $1.30 per share, up from $58.5 million or 93 cents per share in the prior-year quarter.
Revenues Climb, Expenses Increase
Revenues were $316.6 million, jumping 36% from the year-ago quarter. The rise primarily resulted from a higher average AUM balance. The top line surpassed the Zacks Consensus Estimate of $315.4 million.
Management fees earned from the Artisan Funds & Artisan Global Funds rose 41.9% year over year to $199.1 million. Management fees earned from Separate accounts grew 27.1% to $117.1 million.
Total operating expenses amounted to $173.5 million, up 28% year over year. The rise was primarily due to higher incentive compensation and third-party distribution expenses related to increased revenues as well as an increase in compensation and benefits expenses.
Operating income was $143.1 million, up 47% year over year.
AUM Increases on Net Inflows
As of Sep 30, 2021, AUM was $173.6 billion, up 29% from the year-earlier quarter. The company witnessed net client cash inflows of $4.5 billion and $35.5 billion of investment returns in the third quarter.
The average AUM totaled $177.6 billion, up 36% year over year.
Balance Sheet Position Strong
Cash and cash equivalents were $273.3 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 Sep 30, 2021.
Total stockholders’ equity was $271 million as of Sep 30, 2021, compared with $191 million on Dec 31, 2020.
Our View
Artisan Partners’ diverse investment products are expected to support growth. A rise in AUM, given the inflows, supports top-line expansion. Moreover, prudent cost management will aid profitability to some extent.
Artisan Partners Asset Management Inc. Price, Consensus and EPS Surprise
Artisan Partners Asset Management Inc. price-consensus-eps-surprise-chart | Artisan Partners Asset Management Inc. Quote
Currently, Artisan Partners carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
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.
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.
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.