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Cohen & Steers (CNS) Q3 Earnings Beat, Revenues Rise Y/Y

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Cohen & Steers’ (CNS - Free Report) third-quarter 2020 adjusted earnings of 67 cents per share surpassed the Zacks Consensus Estimate of 60 cents. Moreover, the bottom line was 3.1% higher than the year-ago reported figure.

Results primarily benefited from an improvement in revenues, partly offset by higher expenses. Despite net inflows, the company recorded a marginal fall in assets under management (AUM) balance.

Net income available to common stockholders (on a GAAP basis) was $31.9 million or 66 cents per share, down from $34 million or 70 cents per share in the prior-year quarter.

Revenues Improve & Expenses Rise

Revenues (GAAP basis) were $111.2 million, up 5.9% from the year-ago quarter. The rise was driven by an increase in investment advisory and administration fee.

Total expenses (GAAP basis) amounted to $67.9 million, up 4.7% year over year. All cost components, except for general and administrative expenses, witnessed a rise.

Operating income (GAAP basis) was $43.3 million, up 7.9% year over year.

Total non-operating income was $3.2 million, down 51.2% from the year-ago quarter.

AUM Falls Marginally

As of Sep 30, 2020, AUM was $70.5 billion, down marginally from the year-earlier quarter. The company’s net inflows were $2.3 billion in the reported quarter.

Average AUM totaled $69.8 billion, up 1.7% from the prior-year quarter.

Our Take

The company’s diverse product offerings and investment strategies will likely support top-line growth. Moreover, driven by a solid liquidity position, its capital deployments look sustainable.

Cohen Steers Inc Price, Consensus and EPS Surprise

 

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 #2 (Buy). 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) third-quarter 2020 adjusted earnings of $9.22 per share hugely surpassed the Zacks Consensus Estimate of $7.81. The figure reflected a rise of 29% from the year-ago quarter’s number.

Affiliated Managers Group, Inc. (AMG - Free Report) and Waddell & Reed Financial, Inc. are scheduled to announce quarterly results on Oct 26 and Oct 27, respectively.

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