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Invesco Q4 Earnings Beat Estimates on Y/Y Revenue Increase, Stock Up

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Invesco’s (IVZ - Free Report) fourth-quarter 2024 adjusted earnings of 52 cents per share surpassed the Zacks Consensus Estimate of 49 cents. Moreover, the bottom line increased 10.6% from the prior-year quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

The results were primarily aided by a decline in adjusted expenses and higher adjusted net revenues. An increase in the assets under management (AUM) balance on decent inflows was a positive too. In light of these positives, shares of the company were up 1.4% in the pre-market trading session.

Results in the reported quarter included certain notable items. After considering those, net income attributable to common shareholders was $209.3 million or 46 cents per share against a loss of $742.3 million or $1.64 per share in the year-ago quarter.

For 2024, adjusted earnings per share of $1.71 beat the consensus estimate of $1.68 and rose 13.2% year over year. Net income attributable to common shareholders (GAAP) was $538 million or $1.18 per share against a net loss of $333.7 million or 73 cents per share a year ago.

Invesco’s Adjusted Revenues Rise, Adjusted Expenses Decline

Adjusted net revenues in the quarter were $1.16 billion, up 10.6% year over year. The top line met the Zacks Consensus Estimate.

For 2024, net revenues were $4.40 billion, up 2.1% year over year. The top line matched the Zacks Consensus Estimate.

Adjusted operating expenses were $767.1 million, down marginally on a year-over-year basis.

The adjusted operating margin was 33.7%, up from 26.3% a year ago.

IVZ’s AUM Balance Increases

As of Dec. 31, 2024, AUM was $1.85 trillion, up 16.4% year over year. The average AUM at the end of the fourth quarter totaled $1.82 trillion, up 20.4%.

The company witnessed long-term net inflows of $25.6 billion in the reported quarter.

Invesco’s Strong Balance Sheet

As of Dec. 31, 2024, cash and cash equivalents were $986.5 million compared with $1.47 billion as of Dec. 31, 2023.

The long-term debt was $890.6 million.

Our View on IVZ

Invesco is well-poised to benefit from its solid global presence, diverse offerings, and strategic buyouts. Further, measures to improve efficiency will likely keep expenses at a manageable level. However, a tough operating backdrop and high levels of intangible assets on the balance sheet are major near-term concerns.

Invesco Ltd. Price, Consensus and EPS Surprise

Invesco Ltd. Price, Consensus and EPS Surprise

Invesco Ltd. price-consensus-eps-surprise-chart | Invesco Ltd. Quote

Currently, IVZ carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Another Asset Manager

BlackRock’s (BLK - Free Report) fourth-quarter 2024 adjusted earnings of $11.93 per share surpassed the Zacks Consensus Estimate of $11.44. The figure reflects a rise of 23.5% from the year-ago quarter.

BLK’s results benefited from a rise in revenues. AUM witnessed robust growth and touched the $11.55 trillion mark driven by net inflows, partially offset by market depreciation and negative forex impact. However, higher expenses and lower non-operating income acted as headwinds.

An Asset Manager Due to Report

Blackstone (BX - Free Report) is slated to report its fourth quarter and full-year 2024 results on Jan. 30.

Over the past seven days, the Zacks Consensus Estimate for BX’s quarterly earnings has been revised 3.3% downward to $1.46 per share.


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