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Cohen & Steers' (CNS) Q1 Earnings Miss on Lower Revenues
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Cohen & Steers’ (CNS - Free Report) first-quarter 2019 adjusted earnings came in at 58 cents per share, missing the Zacks Consensus Estimate by a penny. Also, the bottom line was 6.5% lower than the year-ago quarter figure.
Results were adversely impacted by fall in revenues and higher expenses. Nonetheless, improvement in assets under management (AUM) and net inflows acted as tailwinds.
Net income available to common stockholders (GAAP basis) was $32.5 million or 68 cents per share, up from $27.6 million or 59 cents per share in the prior-year quarter.
Revenues Decline, Expenses Rise
Revenues (GAAP basis) came in at $94.2 million, down marginally from the year-ago quarter. Higher investment advisory and administration fees were almost offset by fall in distribution and service fees, and portfolio consulting and other income.
Total expenses (GAAP basis) amounted to $58.8 million, up 2.7% year over year. The increase was largely due to a rise in employee compensation and benefits expenses.
Operating income (GAAP basis) was $35.4 million, down 4.8% year over year.
Total non-operating income was $14.9 billion against total non-operating loss of $0.2 billion in the prior-year quarter.
AUM Improves on Net Inflows
As of Mar 31, 2019, AUM was $62.6 billion, up nearly 7.1% from the year-earlier quarter. The company witnessed net inflows of $1.03 billion in the quarter against outflows of $95 million a year ago.
Also, average AUM for the reported quarter totaled $59.5 billion, up nearly 1% year over year.
Our Viewpoint
Cohen & Steers’ diverse investment products are expected to continue supporting revenue growth. While increasing expenses are likely to hurt its profitability to some extent, continuous rise in AUM given the inflows will support growth.
Cohen & Steers Inc Price, Consensus and EPS Surprise
Performance and Release Dates for Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2019 adjusted earnings of $6.61 per share surpassed the Zacks Consensus Estimate of $6.20. However, the figure was 1.3% lower than the year-ago quarter’s number.
Ameriprise Financial (AMP - Free Report) and Invesco (IVZ - Free Report) are slated to report results on Apr 24 and Apr 25, respectively.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Cohen & Steers' (CNS) Q1 Earnings Miss on Lower Revenues
Cohen & Steers’ (CNS - Free Report) first-quarter 2019 adjusted earnings came in at 58 cents per share, missing the Zacks Consensus Estimate by a penny. Also, the bottom line was 6.5% lower than the year-ago quarter figure.
Results were adversely impacted by fall in revenues and higher expenses. Nonetheless, improvement in assets under management (AUM) and net inflows acted as tailwinds.
Net income available to common stockholders (GAAP basis) was $32.5 million or 68 cents per share, up from $27.6 million or 59 cents per share in the prior-year quarter.
Revenues Decline, Expenses Rise
Revenues (GAAP basis) came in at $94.2 million, down marginally from the year-ago quarter. Higher investment advisory and administration fees were almost offset by fall in distribution and service fees, and portfolio consulting and other income.
Total expenses (GAAP basis) amounted to $58.8 million, up 2.7% year over year. The increase was largely due to a rise in employee compensation and benefits expenses.
Operating income (GAAP basis) was $35.4 million, down 4.8% year over year.
Total non-operating income was $14.9 billion against total non-operating loss of $0.2 billion in the prior-year quarter.
AUM Improves on Net Inflows
As of Mar 31, 2019, AUM was $62.6 billion, up nearly 7.1% from the year-earlier quarter. The company witnessed net inflows of $1.03 billion in the quarter against outflows of $95 million a year ago.
Also, average AUM for the reported quarter totaled $59.5 billion, up nearly 1% year over year.
Our Viewpoint
Cohen & Steers’ diverse investment products are expected to continue supporting revenue growth. While increasing expenses are likely to hurt its profitability to some extent, continuous rise in AUM given the inflows will support growth.
Cohen & Steers Inc Price, Consensus and EPS Surprise
Cohen & Steers Inc Price, Consensus and EPS Surprise | Cohen & Steers Inc Quote
Currently, Cohen & Steers sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance and Release Dates for Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2019 adjusted earnings of $6.61 per share surpassed the Zacks Consensus Estimate of $6.20. However, the figure was 1.3% lower than the year-ago quarter’s number.
Ameriprise Financial (AMP - Free Report) and Invesco (IVZ - Free Report) are slated to report results on Apr 24 and Apr 25, respectively.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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