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.
Invesco (IVZ) Q1 Earnings Beat Estimates, AUM Balance Down
Read MoreHide Full Article
Invesco’s (IVZ - Free Report) first-quarter 2023 adjusted earnings of 38 cents per share surpassed the Zacks Consensus Estimate of 36 cents. The bottom line, however, plunged 32.1% from the prior-year quarter. Our estimate for earnings was 31 cents.
Shares of Invesco lost almost 1.5% in pre-market trading despite better-than-expected quarterly performance. A full day’s trading will reflect a clear picture.
Results benefited from a decline in operating expenses. On the other hand, lower assets under management (AUM) balance and long-term outflows hurt revenues.
On a GAAP basis, net income attributable to common shareholders was $145 million or 32 cents per share, down from $197.7 million or 43 cents per share a year ago.
Revenues & Expenses Decline
Adjusted quarterly net revenues were $1.08 billion, falling 14.1% year over year. The top line matched the Zacks Consensus Estimate. Our estimate for net revenues was $1.03 billion.
Adjusted operating expenses were $749 million, down 1.2%. We expected the metric to be $749.1 million.
The adjusted operating margin was 30.4%, down from 39.5% a year ago.
AUM Balance Falls
As of Mar 31, 2023, AUM was $1.48 trillion, which declined 4.7% year over year. Average AUM at the first-quarter end totaled $1.46 trillion, down 5.3%.
The company witnessed long-term net inflows of $2.9 billion in the quarter.
Balance Sheet Strong
As of Mar 31, 2023, cash and cash equivalents were $889 million compared with $1.23 billion on Dec 31, 2022.
Long-term debt amounted to $1.49 billion. The credit facility balance was nil as of Mar 31, 2023. Also, the company renegotiated its credit facility, increasing capacity to $2.0 billion from $1.5 billion. Also, the maturity date has been extended to April 2028 at favorable terms.
Dividend Hike
Concurrently, Invesco announced a quarterly cash dividend of 20 cents per share, representing an increase of 7% from the prior payout. The dividend will be paid out on Jun 2 to shareholders as on May 9.
Our View
Invesco remains well-poised to benefit from its global footprint, product offerings and strategic buyouts. However, elevated expenses, a challenging market environment and high debt levels are major near-term concerns.
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2023 adjusted earnings of $7.93 per share surpassed the Zacks Consensus Estimate of $7.71. However, the figure reflects a decrease of 16.7% from the year-ago quarter. Our estimate for adjusted earnings was $7.37.
BLK's results have benefited from a decline in expenses. However, lower revenues and AUM balance were major headwinds.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2023 earnings of 79 cents per share missed the Zacks Consensus Estimate of 82 cents. The bottom line reflects a decline of 41.9% from the prior-year quarter. Our estimate for earnings was 78 cents.
SEIC's results were adversely impacted by lower revenues. Also, marginally higher expenses created a headwind. Nevertheless, an increase in AUM balance positively impacted the results in the quarter.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Invesco (IVZ) Q1 Earnings Beat Estimates, AUM Balance Down
Invesco’s (IVZ - Free Report) first-quarter 2023 adjusted earnings of 38 cents per share surpassed the Zacks Consensus Estimate of 36 cents. The bottom line, however, plunged 32.1% from the prior-year quarter. Our estimate for earnings was 31 cents.
Shares of Invesco lost almost 1.5% in pre-market trading despite better-than-expected quarterly performance. A full day’s trading will reflect a clear picture.
Results benefited from a decline in operating expenses. On the other hand, lower assets under management (AUM) balance and long-term outflows hurt revenues.
On a GAAP basis, net income attributable to common shareholders was $145 million or 32 cents per share, down from $197.7 million or 43 cents per share a year ago.
Revenues & Expenses Decline
Adjusted quarterly net revenues were $1.08 billion, falling 14.1% year over year. The top line matched the Zacks Consensus Estimate. Our estimate for net revenues was $1.03 billion.
Adjusted operating expenses were $749 million, down 1.2%. We expected the metric to be $749.1 million.
The adjusted operating margin was 30.4%, down from 39.5% a year ago.
AUM Balance Falls
As of Mar 31, 2023, AUM was $1.48 trillion, which declined 4.7% year over year. Average AUM at the first-quarter end totaled $1.46 trillion, down 5.3%.
The company witnessed long-term net inflows of $2.9 billion in the quarter.
Balance Sheet Strong
As of Mar 31, 2023, cash and cash equivalents were $889 million compared with $1.23 billion on Dec 31, 2022.
Long-term debt amounted to $1.49 billion. The credit facility balance was nil as of Mar 31, 2023. Also, the company renegotiated its credit facility, increasing capacity to $2.0 billion from $1.5 billion. Also, the maturity date has been extended to April 2028 at favorable terms.
Dividend Hike
Concurrently, Invesco announced a quarterly cash dividend of 20 cents per share, representing an increase of 7% from the prior payout. The dividend will be paid out on Jun 2 to shareholders as on May 9.
Our View
Invesco remains well-poised to benefit from its global footprint, product offerings and strategic buyouts. However, elevated expenses, a challenging market environment and high debt levels are major near-term concerns.
Invesco Ltd. Price, Consensus and EPS Surprise
Invesco Ltd. price-consensus-eps-surprise-chart | Invesco Ltd. Quote
Currently, IVZ 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) first-quarter 2023 adjusted earnings of $7.93 per share surpassed the Zacks Consensus Estimate of $7.71. However, the figure reflects a decrease of 16.7% from the year-ago quarter. Our estimate for adjusted earnings was $7.37.
BLK's results have benefited from a decline in expenses. However, lower revenues and AUM balance were major headwinds.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2023 earnings of 79 cents per share missed the Zacks Consensus Estimate of 82 cents. The bottom line reflects a decline of 41.9% from the prior-year quarter. Our estimate for earnings was 78 cents.
SEIC's results were adversely impacted by lower revenues. Also, marginally higher expenses created a headwind. Nevertheless, an increase in AUM balance positively impacted the results in the quarter.