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Invesco (IVZ) Q2 Earnings In Line, Revenues Lag Estimates

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Have you been eager to see how Invesco Ltd. (IVZ - Free Report) performed in Q2 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:

In line Earnings

Invesco came out with adjusted earnings of 66 cents per share, which is in line with the Zacks Consensus Estimate.
 
Increase in revenues was offset by a rise in expenses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Invesco depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved 1.5% downward over the last seven days.

However, Invesco have an impressive earnings surprise history. Before reporting Q2 earnings, the company delivered positive 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 $1.36 billion, which lagged the Zacks Consensus Estimate of $1.40 billion. However, it compared favorably with the year-ago number of $1.25 billion.

Key Statistics
 

  • Completed the acquisition of Guggenheim Investments' ETF business and Intelliflo, a technology platform for financial advisors
  • Expenses were $1.03 billion, up 10% year over year
  • Adjusted operating margin was 38.7%
  • Assets under management of $963.3 billion
  • Long-term net outflows were $8.0 billion


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) 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 favorable, 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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