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) Q1 Earnings Top, Revenues Down Y/Y
Read MoreHide Full Article
Affiliated Managers Group Inc.’s (AMG - Free Report) first-quarter 2024 economic earnings of $5.37 per share handily outpaced the Zacks Consensus Estimate of $5.21. The bottom line also jumped 28.5% from the prior-year number.
Results were aided by improvement in assets under management (AUM) balance. Further, the company had a robust liquidity position. However, a decline in revenues and slightly higher expenses were the undermining factors.
Economic net income was $186.7 million, up 18.1% year over year. Our estimate for this metric was $173.3 million.
Revenues Fall, Expenses Rise
Quarterly total revenues declined 3.4% year over year to $499.9 million. Also, the top line missed the Zacks Consensus Estimate of $524.53 million.
Adjusted EBITDA was $259.8 million, up 19.8%. We projected the metric to be $236.7 million.
Total consolidated expenses increased marginally to $381.3 million. We had projected total expenses of $384.7 million.
AUM Rises
As of Mar 31, 2024, total AUM was $699.4 billion, which grew 4.7%. Our estimate for total AUM was $675.2 million. Net client cash outflows in the quarter were $3.7 billion in the reported quarter.
Capital & Liquidity Position Decent
As of Mar 31, 2024, Affiliated Managers had $793.4 million in cash and cash equivalents compared with $813.6 million as of Dec 31, 2023. The company had $2.52 billion of debt, down from $2.54 billion as of Dec 31, 2023.
Shareholders’ equity as of Mar 31, 2024, was $3.59 billion, relatively stable with the Dec 31, 2023 level.
Share Repurchase Update
During the first quarter, Affiliated Managers repurchased shares worth $150 million.
Our Viewpoint
Affiliated Managers remains well-positioned for growth on the back of successful partnerships, global distribution capability and a diverse product mix. However, substantial intangible assets on the company's balance sheet and the tough operating backdrop are major concerns.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
Invesco’s (IVZ - Free Report) first-quarter 2024 adjusted earnings of 33 cents per share lagged the Zacks Consensus Estimate of 40 cents. The bottom line declined 13.2% from the prior-year quarter.
IVZ’s results were primarily hurt by a decline in adjusted revenues, along with higher adjusted expenses. However, an increase in the AUM balance on decent inflows was a positive.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2024 earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 97 cents. The bottom line reflects a rise of 25% from the prior-year quarter.
Results benefited from higher revenues and an increase in AUM balance. Higher expenses acted as a headwind for SEIC.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Affiliated Managers (AMG) Q1 Earnings Top, Revenues Down Y/Y
Affiliated Managers Group Inc.’s (AMG - Free Report) first-quarter 2024 economic earnings of $5.37 per share handily outpaced the Zacks Consensus Estimate of $5.21. The bottom line also jumped 28.5% from the prior-year number.
Results were aided by improvement in assets under management (AUM) balance. Further, the company had a robust liquidity position. However, a decline in revenues and slightly higher expenses were the undermining factors.
Economic net income was $186.7 million, up 18.1% year over year. Our estimate for this metric was $173.3 million.
Revenues Fall, Expenses Rise
Quarterly total revenues declined 3.4% year over year to $499.9 million. Also, the top line missed the Zacks Consensus Estimate of $524.53 million.
Adjusted EBITDA was $259.8 million, up 19.8%. We projected the metric to be $236.7 million.
Total consolidated expenses increased marginally to $381.3 million. We had projected total expenses of $384.7 million.
AUM Rises
As of Mar 31, 2024, total AUM was $699.4 billion, which grew 4.7%. Our estimate for total AUM was $675.2 million. Net client cash outflows in the quarter were $3.7 billion in the reported quarter.
Capital & Liquidity Position Decent
As of Mar 31, 2024, Affiliated Managers had $793.4 million in cash and cash equivalents compared with $813.6 million as of Dec 31, 2023. The company had $2.52 billion of debt, down from $2.54 billion as of Dec 31, 2023.
Shareholders’ equity as of Mar 31, 2024, was $3.59 billion, relatively stable with the Dec 31, 2023 level.
Share Repurchase Update
During the first quarter, Affiliated Managers repurchased shares worth $150 million.
Our Viewpoint
Affiliated Managers remains well-positioned for growth on the back of successful partnerships, global distribution capability and a diverse product mix. However, substantial intangible assets on the company's balance sheet and the tough operating backdrop are major concerns.
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 #3 (Hold). 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) first-quarter 2024 adjusted earnings of 33 cents per share lagged the Zacks Consensus Estimate of 40 cents. The bottom line declined 13.2% from the prior-year quarter.
IVZ’s results were primarily hurt by a decline in adjusted revenues, along with higher adjusted expenses. However, an increase in the AUM balance on decent inflows was a positive.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2024 earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 97 cents. The bottom line reflects a rise of 25% from the prior-year quarter.
Results benefited from higher revenues and an increase in AUM balance. Higher expenses acted as a headwind for SEIC.