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Cohen & Steers Inc (CNS) Up 6.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Cohen & Steers Inc (CNS - Free Report) . Shares have added about 6.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cohen & Steers Inc due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Cohen & Steers Q1 Earnings Lag Estimates, AUM Rises Y/Y
Cohen & Steers’ first-quarter 2021 adjusted earnings of 79 cents per share lagged the Zacks Consensus Estimate of 81 cents. Nevertheless, the bottom line was 29.5% higher than the year-ago figure.
In the reported quarter, the company recorded a rise in revenues. Also, a decline in expenses was witnessed. Further, the company’s assets under management (AUM) balance witnessed improvement, driven by net inflows.
Net income available to common stockholders (on a GAAP basis) was $48.9 million or $1.00 per share, up from $20.6 million or 42 cents per share in the prior-year quarter.
GAAP Revenues Improve, Expenses Decline
Revenues in the reported quarter were $125.7 million, up 18.8% from the year-ago quarter. The rise was mainly driven by an increase in investment advisory and administration fee, and distribution and service fee.
Total expenses amounted to $73.8 million, down 4.7% year over year. The fall was due to a decline in general and administrative costs.
Operating income was $51.9 million, up from $28.4 million in the prior-year quarter.
Total non-operating income was $5 million against non-operating loss of $19.8 million recorded in the year-earlier quarter.
AUM Balance Improves
As of Mar 31, 2021, AUM was $87 billion, up 51.7% from the year-earlier quarter. The company’s net inflows were $3.8 billion in the reported quarter.
Average AUM totaled $82.8 billion, up 20.1% year over year.
2021 Outlook
General and administration (G&A) expenses are now expected to rise 9% year over year from $42.6 million in 2020. This is higher than prior guidance of 6% rise. The rise is likely to be due to incremental investments in technology and global marketing. The company also projects travel and entertainment costs to increase as conditions begin to return to normal. Apart from these, the company expects an increase in recruitment costs associated with the hiring of certain key investment and distribution personnel in addition to the new private real estate group.
Compensation to revenue ratio is expected to remain at 35.5%.
Effective tax rate is anticipated to be 27.25%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
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Cohen & Steers Inc (CNS) Up 6.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Cohen & Steers Inc (CNS - Free Report) . Shares have added about 6.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cohen & Steers Inc due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Cohen & Steers Q1 Earnings Lag Estimates, AUM Rises Y/Y
Cohen & Steers’ first-quarter 2021 adjusted earnings of 79 cents per share lagged the Zacks Consensus Estimate of 81 cents. Nevertheless, the bottom line was 29.5% higher than the year-ago figure.
In the reported quarter, the company recorded a rise in revenues. Also, a decline in expenses was witnessed. Further, the company’s assets under management (AUM) balance witnessed improvement, driven by net inflows.
Net income available to common stockholders (on a GAAP basis) was $48.9 million or $1.00 per share, up from $20.6 million or 42 cents per share in the prior-year quarter.
GAAP Revenues Improve, Expenses Decline
Revenues in the reported quarter were $125.7 million, up 18.8% from the year-ago quarter. The rise was mainly driven by an increase in investment advisory and administration fee, and distribution and service fee.
Total expenses amounted to $73.8 million, down 4.7% year over year. The fall was due to a decline in general and administrative costs.
Operating income was $51.9 million, up from $28.4 million in the prior-year quarter.
Total non-operating income was $5 million against non-operating loss of $19.8 million recorded in the year-earlier quarter.
AUM Balance Improves
As of Mar 31, 2021, AUM was $87 billion, up 51.7% from the year-earlier quarter. The company’s net inflows were $3.8 billion in the reported quarter.
Average AUM totaled $82.8 billion, up 20.1% year over year.
2021 Outlook
General and administration (G&A) expenses are now expected to rise 9% year over year from $42.6 million in 2020. This is higher than prior guidance of 6% rise. The rise is likely to be due to incremental investments in technology and global marketing. The company also projects travel and entertainment costs to increase as conditions begin to return to normal. Apart from these, the company expects an increase in recruitment costs associated with the hiring of certain key investment and distribution personnel in addition to the new private real estate group.
Compensation to revenue ratio is expected to remain at 35.5%.
Effective tax rate is anticipated to be 27.25%.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.