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What's in Store for Affiliated Managers (AMG) in Q1 Earnings?

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Affiliated Managers Group Inc. (AMG - Free Report) is slated to report first-quarter 2020 results on Apr 27, before the opening bell. Its earnings and revenues are expected to have declined in the quarter on a year-over-year basis.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results benefited from higher adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), and robust liquidity position. However, lower revenues, fall in assets under management (AUM) balance and rise in expenses were the undermining factors.

The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in three of the trailing four quarters, the average beat being 4.2%.

Affiliated Managers Group, Inc. Price and EPS Surprise
 

Affiliated Managers Group, Inc. Price and EPS Surprise

Affiliated Managers Group, Inc. price-eps-surprise | Affiliated Managers Group, Inc. Quote

Activities of the company in the first quarter did not encourage analysts to revise earnings estimates upward. Thus, the Zacks Consensus Estimate for its earnings of $3.14 for the to-be-reported quarter has decreased 2.2% over the past seven days. Also, it indicates a decline of 3.7% from the year-ago quarter’s reported figure.

The consensus estimate for sales is pegged at $483.7 million, indicating a fall of 10.9% from the year-ago quarter’s reported number.

Key Expectations for Q1

The consensus estimate for total AUM is pegged at $709 billion, which indicates a decline of 1.9% from the prior quarter’s reported number.

Management expects adjusted EBITDA of $215-$225 million.

Performance fee is anticipated to be $15-$25 million. Other economic items are anticipated to be $1 million.

On the cost front, interest expenses are expected to be $19 million, suggesting no change from the prior quarter level.

Also, the company’s share of amortization and impairments are expected to be $50 million.

Earnings Whispers

Now, let’s check what our quantitative model predicts.

According to our quantitative model, chances of Affiliated Managers beating the Zacks Consensus Estimate in the first quarter are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Affiliated Managers is 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks That Warrant a Look

Here are some finance stocks that you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat in their upcoming releases.

CURO Group Holdings Corp. (CURO - Free Report) is slated to release quarterly results on Apr 30. The company has an Earnings ESP of +1.47% and it currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Virtu Financial, Inc. (VIRT - Free Report) is scheduled to report quarterly earnings on May 7. The company, which sports a Zacks Rank of 1 at present, has an Earnings ESP of +41.57%.

Prosperity Bancshares, Inc. (PB - Free Report) is scheduled to report quarterly earnings on Apr 29. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +0.82%.

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