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Cohen & Steers' (CNS) Q1 Earnings Miss, AUM Balance Down
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Cohen & Steers’ (CNS - Free Report) first-quarter 2020 adjusted earnings of 61 cents per share missed the Zacks Consensus Estimate of 66 cents. However, the bottom line was 5.2% higher than the year-ago reported figure.
Rise in expenses and fall in assets under management (AUM) balance were the major headwinds. However, improvement in revenues and modest asset inflows offered some support.
Net income available to common stockholders (on a GAAP basis) was $20.6 million or 42 cents per share, down from $32.5 million or 68 cents in the prior-year quarter.
Revenues & Expenses Rise
Revenues (GAAP basis) were $105.8 million, up 12.3% from the year-ago quarter. An increase in all three components of revenues drove the upside.
Total expenses (GAAP basis) amounted to $77.5 million, increasing 31.8% year over year. The upswing resulted from a rise in all cost components.
Operating income (GAAP basis) was $28.4 million, down 19.9% year over year.
Total non-operating loss was $19.8 million against non-operating income of $14.9 million in the year-ago quarter.
AUM Falls
As of Mar 31, 2020, AUM was $57.4 billion, down 13.2% from the year-earlier quarter, mainly due market depreciation. The company’s net inflows were $1.2 billion in the quarter.
However, average AUM totaled $69 billion, up 9.8% from the prior-year quarter.
Our Take
While the company’s diverse product offerings and investment strategies will likely continue to support top-line growth, rising operating expenses and coronavirus-related uncertainty are major near-term concerns.
Cohen & Steers Inc Price, Consensus and EPS Surprise
Performance & Earnings Release Dates of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2020 adjusted earnings of $6.60 per share lagged the Zacks Consensus Estimate of $6.69. The figure was marginally lower than the year-ago reported number.
Affiliated Managers Group, Inc. (AMG - Free Report) and Waddell & Reed Financial, Inc. are scheduled to announce first-quarter results on Apr 27 and Apr 28, respectively.
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Cohen & Steers' (CNS) Q1 Earnings Miss, AUM Balance Down
Cohen & Steers’ (CNS - Free Report) first-quarter 2020 adjusted earnings of 61 cents per share missed the Zacks Consensus Estimate of 66 cents. However, the bottom line was 5.2% higher than the year-ago reported figure.
Rise in expenses and fall in assets under management (AUM) balance were the major headwinds. However, improvement in revenues and modest asset inflows offered some support.
Net income available to common stockholders (on a GAAP basis) was $20.6 million or 42 cents per share, down from $32.5 million or 68 cents in the prior-year quarter.
Revenues & Expenses Rise
Revenues (GAAP basis) were $105.8 million, up 12.3% from the year-ago quarter. An increase in all three components of revenues drove the upside.
Total expenses (GAAP basis) amounted to $77.5 million, increasing 31.8% year over year. The upswing resulted from a rise in all cost components.
Operating income (GAAP basis) was $28.4 million, down 19.9% year over year.
Total non-operating loss was $19.8 million against non-operating income of $14.9 million in the year-ago quarter.
AUM Falls
As of Mar 31, 2020, AUM was $57.4 billion, down 13.2% from the year-earlier quarter, mainly due market depreciation. The company’s net inflows were $1.2 billion in the quarter.
However, average AUM totaled $69 billion, up 9.8% from the prior-year quarter.
Our Take
While the company’s diverse product offerings and investment strategies will likely continue to support top-line growth, rising operating expenses and coronavirus-related uncertainty are major near-term concerns.
Cohen & Steers Inc Price, Consensus and EPS Surprise
Cohen & Steers Inc price-consensus-eps-surprise-chart | Cohen & Steers Inc Quote
Currently, Cohen & Steers carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Release Dates of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2020 adjusted earnings of $6.60 per share lagged the Zacks Consensus Estimate of $6.69. The figure was marginally lower than the year-ago reported number.
Affiliated Managers Group, Inc. (AMG - Free Report) and Waddell & Reed Financial, Inc. are scheduled to announce first-quarter results on Apr 27 and Apr 28, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>