We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Artisan Partners (APAM) Q3 Earnings Top Estimates, AUM Rises
Read MoreHide Full Article
Artisan Partners Asset Management Inc.’s (APAM - Free Report) third-quarter 2021 adjusted net income per adjusted share was $1.33, surpassing the Zacks Consensus Estimate of $1.27. The bottom line soared from 90 cents in the year-ago quarter.
Results were supported by a rise in revenues and higher assets under management (AUM). However, an increase in expenses was an undermining factor.
Net income available to common stockholders (GAAP basis) was $86.4 million or $1.30 per share, up from $58.5 million or 93 cents per share in the prior-year quarter.
Revenues Climb, Expenses Increase
Revenues were $316.6 million, jumping 36% from the year-ago quarter. The rise primarily resulted from a higher average AUM balance. The top line surpassed the Zacks Consensus Estimate of $315.4 million.
Management fees earned from the Artisan Funds & Artisan Global Funds rose 41.9% year over year to $199.1 million. Management fees earned from Separate accounts grew 27.1% to $117.1 million.
Total operating expenses amounted to $173.5 million, up 28% year over year. The rise was primarily due to higher incentive compensation and third-party distribution expenses related to increased revenues as well as an increase in compensation and benefits expenses.
Operating income was $143.1 million, up 47% year over year.
AUM Increases on Net Inflows
As of Sep 30, 2021, AUM was $173.6 billion, up 29% from the year-earlier quarter. The company witnessed net client cash inflows of $4.5 billion and $35.5 billion of investment returns in the third quarter.
The average AUM totaled $177.6 billion, up 36% year over year.
Balance Sheet Position Strong
Cash and cash equivalents were $273.3 million compared with $155 million as of Dec 31, 2020. The company’s debt leverage ratio, calculated in accordance with its loan agreements, was 0.4 as of Sep 30, 2021.
Total stockholders’ equity was $271 million as of Sep 30, 2021, compared with $191 million on Dec 31, 2020.
Our View
Artisan Partners’ diverse investment products are expected to support growth. A rise in AUM, given the inflows, supports top-line expansion. Moreover, prudent cost management will aid profitability to some extent.
Artisan Partners Asset Management Inc. Price, Consensus and EPS Surprise
Invesco’s (IVZ - Free Report) third-quarter 2021 adjusted earnings of 77 cents per share outpaced the Zacks Consensus Estimate of 73 cents. The bottom line grew 45.3% from the prior-year quarter.
Blackstone’s (BX - Free Report) third-quarter 2021 distributable earnings of $1.28 per share comfortably surpassed the Zacks Consensus Estimate of 93 cents. The figure reflects a significant rise from 63 cents recorded in the prior-year quarter.
BlackRock, Inc.’s (BLK - Free Report) third-quarter 2021 adjusted earnings of $10.95 per share outpaced the Zacks Consensus Estimate of $9.63. The figure reflects a rise of 18.8% from the year-ago quarter’s number.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Artisan Partners (APAM) Q3 Earnings Top Estimates, AUM Rises
Artisan Partners Asset Management Inc.’s (APAM - Free Report) third-quarter 2021 adjusted net income per adjusted share was $1.33, surpassing the Zacks Consensus Estimate of $1.27. The bottom line soared from 90 cents in the year-ago quarter.
Results were supported by a rise in revenues and higher assets under management (AUM). However, an increase in expenses was an undermining factor.
Net income available to common stockholders (GAAP basis) was $86.4 million or $1.30 per share, up from $58.5 million or 93 cents per share in the prior-year quarter.
Revenues Climb, Expenses Increase
Revenues were $316.6 million, jumping 36% from the year-ago quarter. The rise primarily resulted from a higher average AUM balance. The top line surpassed the Zacks Consensus Estimate of $315.4 million.
Management fees earned from the Artisan Funds & Artisan Global Funds rose 41.9% year over year to $199.1 million. Management fees earned from Separate accounts grew 27.1% to $117.1 million.
Total operating expenses amounted to $173.5 million, up 28% year over year. The rise was primarily due to higher incentive compensation and third-party distribution expenses related to increased revenues as well as an increase in compensation and benefits expenses.
Operating income was $143.1 million, up 47% year over year.
AUM Increases on Net Inflows
As of Sep 30, 2021, AUM was $173.6 billion, up 29% from the year-earlier quarter. The company witnessed net client cash inflows of $4.5 billion and $35.5 billion of investment returns in the third quarter.
The average AUM totaled $177.6 billion, up 36% year over year.
Balance Sheet Position Strong
Cash and cash equivalents were $273.3 million compared with $155 million as of Dec 31, 2020. The company’s debt leverage ratio, calculated in accordance with its loan agreements, was 0.4 as of Sep 30, 2021.
Total stockholders’ equity was $271 million as of Sep 30, 2021, compared with $191 million on Dec 31, 2020.
Our View
Artisan Partners’ diverse investment products are expected to support growth. A rise in AUM, given the inflows, supports top-line expansion. Moreover, prudent cost management will aid profitability to some extent.
Artisan Partners Asset Management Inc. Price, Consensus and EPS Surprise
Artisan Partners Asset Management Inc. price-consensus-eps-surprise-chart | Artisan Partners Asset Management Inc. Quote
Currently, Artisan Partners carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
Invesco’s (IVZ - Free Report) third-quarter 2021 adjusted earnings of 77 cents per share outpaced the Zacks Consensus Estimate of 73 cents. The bottom line grew 45.3% from the prior-year quarter.
Blackstone’s (BX - Free Report) third-quarter 2021 distributable earnings of $1.28 per share comfortably surpassed the Zacks Consensus Estimate of 93 cents. The figure reflects a significant rise from 63 cents recorded in the prior-year quarter.
BlackRock, Inc.’s (BLK - Free Report) third-quarter 2021 adjusted earnings of $10.95 per share outpaced the Zacks Consensus Estimate of $9.63. The figure reflects a rise of 18.8% from the year-ago quarter’s number.