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Investment Managers' Q2 Earnings on Jul 31: AMG, SF & APAM

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The performance of investment managers (which are part of the broader Zacks Finance sector) has been decent over the last several quarters. Results are not expected to be unusual this time too, as the markets and currencies remained favorable. Also, the industry witnessed better-than-expected flows this time around.

Although the U.S. markets supported equity assets with marginal returns amid mixed economic data, both the non-U.S. developed and emerging markets aided a decent growth of equity assets with better performances. Hence, asset managers with global presence are expected to register a rise in equity asset under management (AUM). Moreover, a weak U.S. dollar drove the global diversified AUM mix.

Also, fee waivers are expected to decline in the quarter due to rising interest rates. However, higher marketing and investment costs are anticipated to hurt bottom-line growth.

Per our latest Earnings Outlook, overall earnings for Investment managers in second-quarter 2017 are likely to be up 7.7%.

Our quantitative model offers some insights into stocks that are about to report earnings. Per the model, in order to be confident of an earnings beat, a stock needs to have the right combination of 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’re reported with our Earnings ESP Filter.

Let’s take a look at the three investment managers that are scheduled to release second-quarter results on Jul 31.

Artisan Partners Asset Management Inc. (APAM - Free Report) is slated to release results after the market opens. The company’s Zacks Consensus Estimate of 59 cents per share for the to-be-reported quarter has been revised 3.5% upward over the last 30 days. The estimate also reflects a year-over-year improvement of 55.3%.

However, our proven model cannot conclusively predict if the company will be able to beat the Zacks Consensus Estimate this time around. This is because, despite carrying a Zacks Rank #1 (Strong Buy), the stock has an Earnings ESP of 0.00%.

Also, the company does not have an impressive earnings surprise history, as it beat the Zacks Consensus Estimate in only two of the trailing four quarters, as is evident in the chart below.

Stifel Financial Corp. (SF - Free Report) is set to announce results before the market opens. The Zacks Consensus Estimate of 76 cents per share for the upcoming release has been revised 2.6% downward over the last 30 days. However, the estimate indicates year-over-year growth of about 90%.

Again, our proven model does not conclusively predict an earnings beat for the company as it has a Zacks Rank #4 (Sell) with an Earnings ESP of 0.00%.

The company does not have an impressive earnings surprise history. It delivered an average negative surprise of 1.5% in the trailing four quarters, as shown in the chart below.

Affiliated Managers Group, Inc. (AMG - Free Report) is also slated to release results before the market opens. The chances of the company beating the Zacks Consensus Estimate this time around are low, as it has an Earnings ESP of -0.31% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nevertheless, excellent long-term performance of the company’s affiliates is expected to boost its top line. Management expects total interest expenses in the second quarter to remain unchanged on a sequential basis. (Read More: Why Affiliated Managers Q2 Earnings Might Disappoint)

Notably, the company boasts an impressive earning surprise history, having beaten the Zacks Consensus Estimate in each of the trailing four quarters, with an average beat of 1.6%.

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