We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Affiliated Managers (AMG) Q4 Earnings Beat as Revenues, AUM Rise
Read MoreHide Full Article
Affiliated Managers Group Inc.’s (AMG - Free Report) fourth-quarter 2021 economic earnings of $6.10 per share handily surpassed the Zacks Consensus Estimate of $5.81. The bottom line jumped 44.5% year over year.
Results were aided by an improvement in revenues and growth in assets under management (AUM) balance, partly offset by higher expenses. Further, the company had a robust liquidity position.
Economic net income was $255.3 million, up 33.4% from the prior-year quarter.
In 2021, economic earnings per share of $18.28 beat the consensus estimate of $18.11 and grew 36.8% year over year. Economic net income was $779.8 million, up 24.9% from 2020.
Revenues & AUM Improve, Expenses Rise
Total revenues in the reported quarter soared 24.8% year over year to $691.8 million. Also, the top line beat the Zacks Consensus Estimate of $658.67 million.
In 2021, total revenues rose 19% to $2.41 billion. The top line also surpassed the consensus estimate of $2.38 billion.
Adjusted EBITDA was $356.8 million, jumping 39.8% from the year-ago quarter.
Total expenses increased 20.9% year over year to $467.7 million. An increase in all cost components, except for depreciation and other amortization costs, led to the rise.
As of Dec 31, 2021, total AUM was $813.8 billion, up 13.6% year over year. Net client cash outflows in the quarter were $6.2 billion.
Capital & Liquidity Position Decent
As of Dec 31, 2021, Affiliated Managers had $908.5 million in cash and cash equivalents compared with $1.04 billion as of Dec 31, 2020. The company had $2.49 billion of debt, which increased 7.7% from the Dec 31, 2020 level.
Shareholders’ equity as of Dec 31, 2021, was $2.79 billion compared with $2.78 billion as of Dec 31, 2020.
Share Repurchase Update
In the reported quarter, the company repurchased shares worth $120 million.
The company has increased the share buyback authorization to a total of 5.1 million shares.
Our View
Affiliated Managers remains well-positioned for growth on the back of successful partnerships and global distribution capability along with a diverse product mix. However, the presence of substantial intangible assets on the company's balance sheet remains a concern.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2021 adjusted earnings of $10.42 per share outpaced the Zacks Consensus Estimate of $10.23. The figure reflects a rise of 2.4% from the year-ago quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in AUM balance.
Invesco’s (IVZ - Free Report) fourth-quarter 2021 adjusted earnings of 86 cents per share handily outpaced the Zacks Consensus Estimate of 76 cents. The bottom line grew 19.4% from the prior-year quarter.
IVZ’s results reflected an improvement in revenues and solid growth in AUM balance. However, a rise in operating expenses was a headwind.
Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2021 adjusted operating earnings per share of $6.15 surpassed the Zacks Consensus Estimate of $5.77. The bottom line reflects a rise of 35.8% from the year-ago quarter.
AMP’s results were aided by revenue growth, partly offset by higher expenses. Improvements in AUM and assets under administration balance were tailwinds.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Affiliated Managers (AMG) Q4 Earnings Beat as Revenues, AUM Rise
Affiliated Managers Group Inc.’s (AMG - Free Report) fourth-quarter 2021 economic earnings of $6.10 per share handily surpassed the Zacks Consensus Estimate of $5.81. The bottom line jumped 44.5% year over year.
Results were aided by an improvement in revenues and growth in assets under management (AUM) balance, partly offset by higher expenses. Further, the company had a robust liquidity position.
Economic net income was $255.3 million, up 33.4% from the prior-year quarter.
In 2021, economic earnings per share of $18.28 beat the consensus estimate of $18.11 and grew 36.8% year over year. Economic net income was $779.8 million, up 24.9% from 2020.
Revenues & AUM Improve, Expenses Rise
Total revenues in the reported quarter soared 24.8% year over year to $691.8 million. Also, the top line beat the Zacks Consensus Estimate of $658.67 million.
In 2021, total revenues rose 19% to $2.41 billion. The top line also surpassed the consensus estimate of $2.38 billion.
Adjusted EBITDA was $356.8 million, jumping 39.8% from the year-ago quarter.
Total expenses increased 20.9% year over year to $467.7 million. An increase in all cost components, except for depreciation and other amortization costs, led to the rise.
As of Dec 31, 2021, total AUM was $813.8 billion, up 13.6% year over year. Net client cash outflows in the quarter were $6.2 billion.
Capital & Liquidity Position Decent
As of Dec 31, 2021, Affiliated Managers had $908.5 million in cash and cash equivalents compared with $1.04 billion as of Dec 31, 2020. The company had $2.49 billion of debt, which increased 7.7% from the Dec 31, 2020 level.
Shareholders’ equity as of Dec 31, 2021, was $2.79 billion compared with $2.78 billion as of Dec 31, 2020.
Share Repurchase Update
In the reported quarter, the company repurchased shares worth $120 million.
The company has increased the share buyback authorization to a total of 5.1 million shares.
Our View
Affiliated Managers remains well-positioned for growth on the back of successful partnerships and global distribution capability along with a diverse product mix. However, the presence of substantial intangible assets on the company's balance sheet remains a concern.
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 #4 (Sell).
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) fourth-quarter 2021 adjusted earnings of $10.42 per share outpaced the Zacks Consensus Estimate of $10.23. The figure reflects a rise of 2.4% from the year-ago quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in AUM balance.
Invesco’s (IVZ - Free Report) fourth-quarter 2021 adjusted earnings of 86 cents per share handily outpaced the Zacks Consensus Estimate of 76 cents. The bottom line grew 19.4% from the prior-year quarter.
IVZ’s results reflected an improvement in revenues and solid growth in AUM balance. However, a rise in operating expenses was a headwind.
Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2021 adjusted operating earnings per share of $6.15 surpassed the Zacks Consensus Estimate of $5.77. The bottom line reflects a rise of 35.8% from the year-ago quarter.
AMP’s results were aided by revenue growth, partly offset by higher expenses. Improvements in AUM and assets under administration balance were tailwinds.