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Invesco (IVZ) to Report Q1 Earnings: What's in the Cards?
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Invesco (IVZ - Free Report) is slated to report first-quarter 2024 results on Apr 23, before market open. The company’s earnings and revenues are expected to have witnessed a rise on a year-over-year basis.
In the last reported quarter, the company’s adjusted earnings surpassed the Zacks Consensus Estimate. Results benefited from an increase in the assets under management (AUM) balance on decent inflows. However, a rise in operating expenses and lower revenues were the undermining factors.
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 first-quarter earnings is pegged at 40 cents, which has been unchanged over the past seven days. The figure indicates a rise of 5.3% from the year-ago quarter.
The consensus estimate for sales is pegged at $1.08 billion, suggesting a marginal year-over-year rise.
Other Key Q1 Estimates & Factors to Note
Per the monthly metrics data published by Invesco, its preliminary total AUM as of Mar 31, 2024, was $1.66 trillion, up 4.4% from the Dec 31, 2023, level.
Driven by the improvement in the AUM balance, the company’s investment management fee is expected to have risen. The Zacks Consensus Estimate for investment management fee is pegged at $1.04 billion, indicating an increase of 3.5% on a sequential basis. Our estimate for the same is $1.05 billion.
The consensus estimate for performance fees of $6.18 million indicates a plunge of 68.3% from the previous quarter. Our estimate for the same is $4.5 million.
The consensus estimate for service and distribution fees of $355 million indicates a 2.9% sequential rise. The Zacks Consensus Estimate for other revenues is pegged at $46.4 million, suggesting a marginal increase. Our estimate for service and distribution fees, and other revenues is $342.7 million and $32.9 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.
Our estimate for total expenses (GAAP) is $1.22 billion. Management expects compensation expenses to be $25 million higher on a sequential basis because of seasonality.
What Our Model Predicts
According to our proven model, the chances of Invesco beating the Zacks Consensus Estimate for earnings this time are low. This is because it does not have 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 are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Invesco is -0.52%.
Zacks Rank: The company currently carries a Zacks Rank #2 (Buy).
Finance Stocks That Warrant a Look
A couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time, are Truist Financial (TFC - Free Report) and Ares Capital Corporation (ARCC - Free Report) .
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Invesco (IVZ) to Report Q1 Earnings: What's in the Cards?
Invesco (IVZ - Free Report) is slated to report first-quarter 2024 results on Apr 23, before market open. The company’s earnings and revenues are expected to have witnessed a rise on a year-over-year basis.
In the last reported quarter, the company’s adjusted earnings surpassed the Zacks Consensus Estimate. Results benefited from an increase in the assets under management (AUM) balance on decent inflows. However, a rise in operating expenses and lower revenues were the undermining factors.
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 first-quarter earnings is pegged at 40 cents, which has been unchanged over the past seven days. The figure indicates a rise of 5.3% from the year-ago quarter.
The consensus estimate for sales is pegged at $1.08 billion, suggesting a marginal year-over-year rise.
Other Key Q1 Estimates & Factors to Note
Per the monthly metrics data published by Invesco, its preliminary total AUM as of Mar 31, 2024, was $1.66 trillion, up 4.4% from the Dec 31, 2023, level.
Driven by the improvement in the AUM balance, the company’s investment management fee is expected to have risen. The Zacks Consensus Estimate for investment management fee is pegged at $1.04 billion, indicating an increase of 3.5% on a sequential basis. Our estimate for the same is $1.05 billion.
The consensus estimate for performance fees of $6.18 million indicates a plunge of 68.3% from the previous quarter. Our estimate for the same is $4.5 million.
The consensus estimate for service and distribution fees of $355 million indicates a 2.9% sequential rise. The Zacks Consensus Estimate for other revenues is pegged at $46.4 million, suggesting a marginal increase. Our estimate for service and distribution fees, and other revenues is $342.7 million and $32.9 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.
Our estimate for total expenses (GAAP) is $1.22 billion. Management expects compensation expenses to be $25 million higher on a sequential basis because of seasonality.
What Our Model Predicts
According to our proven model, the chances of Invesco beating the Zacks Consensus Estimate for earnings this time are low. This is because it does not have 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 are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Invesco is -0.52%.
Zacks Rank: The company currently carries a Zacks Rank #2 (Buy).
Finance Stocks That Warrant a Look
A couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time, are Truist Financial (TFC - Free Report) and Ares Capital Corporation (ARCC - Free Report) .
TFC is scheduled to release first-quarter 2024 earnings on Apr 22. The company carries a Zacks Rank of 3 at present and has an Earnings ESP of +0.83%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Earnings ESP for ARCC is +0.38%. The stock carries a Zacks Rank of 3 at present. ARCC is slated to report first-quarter 2024 results on May 1.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.