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Affiliated Managers (AMG) Q1 Earnings Top, Revenues Down Y/Y

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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 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.


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