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Invesco (IVZ) Misses on Q3 Earnings & Revenue Estimates

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Have you been eager to see how Invesco Ltd. (IVZ - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this GA-based asset manager’s earnings release this morning:

An Earnings Miss

Invesco came out with adjusted earnings of 60 cents per share, which missed the Zacks Consensus Estimate by a penny.
 
Lower revenues were mainly responsible for the earnings miss.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Invesco depicted optimistic prior to the earnings release. The Zacks Consensus Estimate has moved 1.7% up over the last 30 days.

However, Invesco doesn’t have a decent earnings surprise history. Before posting the earnings miss in Q3, the company delivered negative surprises in three of the prior four quarters, as evident from the chart below:

INVESCO LTD Price and EPS Surprise

 

INVESCO LTD Price and EPS Surprise | INVESCO LTD Quote

Revenue Came In Lower Than Expected   

Invesco posted GAAP revenues of $1.20 billion, which missed the Zacks Consensus Estimate of $1.24 billion. Also, it compared unfavorably with the year-ago number of $1.27 billion.

Key Statistics:

 

  • Adjusted operating margin was 39.7%
  • Assets under management (AUM) of $820.2 billion
  • Long-term net inflows were $12.2 billion


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Invesco. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this Invesco earnings report!

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