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) to Report Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
Invesco (IVZ - Free Report) is slated to report fourth-quarter and full-year 2023 results on Jan 23, before market open. The company’s quarterly earnings and revenues are expected to have witnessed a decrease on a year-over-year basis.
In the last reported quarter, the company’s adjusted earnings lagged the Zacks Consensus Estimate. Results were hurt by a rise in operating expenses and lower revenues. Yet, an increase in assets under management (AUM) balance acted as a tailwind.
Invesco does not have an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two and lagged in two of the trailing four quarters.
The Zacks Consensus Estimate for Invesco’s fourth-quarter earnings is pegged at 38 cents, which has been revised 2.7% north over the past week. The figure indicates a fall of 2.6% from the year-ago quarter. Our estimate for earnings is 35 cents.
The consensus estimate for sales is pegged at $1.11 billion, suggesting a year-over-year marginal fall. Our estimate for revenues is $1.1 billion.
Other Key Q4 Estimates & Factors to Note
Per the monthly metrics data published by Invesco, its preliminary total AUM as of Dec 31, 2023, was $1,59 trillion, jumping 6.6% from the Sep 30, 2023 level. In the fourth quarter, AUM was favorably impacted by solid market returns and inflows.
Driven by the improvement in AUM balance, the company’s investment management fee is expected to have risen. The Zacks Consensus Estimate for investment management fee is pegged at $1.02 billion, indicating an increase of 1% on a year-over-year basis. Our estimate for the same is $1.04 billion.
The consensus estimate for performance fees of $31.8 million indicates a plunge of 42.2% from the prior-year quarter. Our estimate for the same is $27 million.
The consensus estimate for service and distribution fees of $347.8 million indicates a 4.6% rise. The Zacks Consensus Estimate for other revenues is pegged at $52.2 million, suggesting an increase of 6.9%. Our estimate for service and distribution fees and other revenues is $341.2 million and $42.2 million, respectively.
On the cost front, while Invesco’s cost-saving initiatives are likely to have boosted its efficiency, the steady rise in compensation and marketing costs is expected to have had an adverse impact on overall expenses in the to-be-reported quarter. Further, management expects to incur an incremental $15-$20 million in restructuring expenses associated with its simplification efforts.
Our estimate for total expenses (GAAP) is $1.27 billion, indicating an increase of 5.6% year over year.
What Our Model Predicts
According to our proven model, the chances of Invesco beating the Zacks Consensus Estimate this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Invesco is +0.63%
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Finance Stocks That Warrant a Look
Here are a couple of other finance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time:
The Earnings ESP for SEI Investments Company (SEIC - Free Report) is +2.40% and it carries a Zacks Rank #2 (Buy) at present. The company is expected to report fourth-quarter and full-year 2023 results on Jan 24.
Over the past 30 days, the Zacks Consensus Estimate for SEIC’s quarterly earnings has moved 3.4% north to 90 cents per share.
Image: Bigstock
Invesco (IVZ) to Report Q4 Earnings: What's in the Cards?
Invesco (IVZ - Free Report) is slated to report fourth-quarter and full-year 2023 results on Jan 23, before market open. The company’s quarterly earnings and revenues are expected to have witnessed a decrease on a year-over-year basis.
In the last reported quarter, the company’s adjusted earnings lagged the Zacks Consensus Estimate. Results were hurt by a rise in operating expenses and lower revenues. Yet, an increase in assets under management (AUM) balance acted as a tailwind.
Invesco does not have an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two and lagged in two of the trailing four quarters.
Invesco Ltd. Price and EPS Surprise
Invesco Ltd. price-eps-surprise | Invesco Ltd. Quote
The Zacks Consensus Estimate for Invesco’s fourth-quarter earnings is pegged at 38 cents, which has been revised 2.7% north over the past week. The figure indicates a fall of 2.6% from the year-ago quarter. Our estimate for earnings is 35 cents.
The consensus estimate for sales is pegged at $1.11 billion, suggesting a year-over-year marginal fall. Our estimate for revenues is $1.1 billion.
Other Key Q4 Estimates & Factors to Note
Per the monthly metrics data published by Invesco, its preliminary total AUM as of Dec 31, 2023, was $1,59 trillion, jumping 6.6% from the Sep 30, 2023 level. In the fourth quarter, AUM was favorably impacted by solid market returns and inflows.
Driven by the improvement in AUM balance, the company’s investment management fee is expected to have risen. The Zacks Consensus Estimate for investment management fee is pegged at $1.02 billion, indicating an increase of 1% on a year-over-year basis. Our estimate for the same is $1.04 billion.
The consensus estimate for performance fees of $31.8 million indicates a plunge of 42.2% from the prior-year quarter. Our estimate for the same is $27 million.
The consensus estimate for service and distribution fees of $347.8 million indicates a 4.6% rise. The Zacks Consensus Estimate for other revenues is pegged at $52.2 million, suggesting an increase of 6.9%. Our estimate for service and distribution fees and other revenues is $341.2 million and $42.2 million, respectively.
On the cost front, while Invesco’s cost-saving initiatives are likely to have boosted its efficiency, the steady rise in compensation and marketing costs is expected to have had an adverse impact on overall expenses in the to-be-reported quarter. Further, management expects to incur an incremental $15-$20 million in restructuring expenses associated with its simplification efforts.
Our estimate for total expenses (GAAP) is $1.27 billion, indicating an increase of 5.6% year over year.
What Our Model Predicts
According to our proven model, the chances of Invesco beating the Zacks Consensus Estimate this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Invesco is +0.63%
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Finance Stocks That Warrant a Look
Here are a couple of other finance stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this time:
The Earnings ESP for SEI Investments Company (SEIC - Free Report) is +2.40% and it carries a Zacks Rank #2 (Buy) at present. The company is expected to report fourth-quarter and full-year 2023 results on Jan 24.
Over the past 30 days, the Zacks Consensus Estimate for SEIC’s quarterly earnings has moved 3.4% north to 90 cents per share.
Raymond James (RJF - Free Report) is scheduled to release quarterly numbers on Jan 24. The company, which carries a Zacks Rank #2 at present, has an Earnings ESP of +0.81%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RJF’s quarterly earnings estimates have been revised 1.8% upward to $2.27 over the past month.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.