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What is in the Offing for Invesco (IVZ) in Q1 Earnings?
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Invesco (IVZ - Free Report) is slated to announce first-quarter 2022 results on Apr 26, before market open. While its earnings are expected to have witnessed a decline in the to-be-reported quarter, revenues are projected to have improved on a year-over-year basis.
In the last reported quarter, the company’s adjusted earnings outpaced the Zacks Consensus Estimate. Results reflected an improvement in revenues and solid growth in assets under management (AUM) balance.
Invesco has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the beat being 9.6%, on average.
The Zacks Consensus Estimate for Invesco’s first-quarter earnings is pegged at 61 cents, which has moved 4.7% lower over the past seven days. The figure indicates a decline of 10.3% from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $1.29 billion, suggesting a year-over-year rise of 2.8%.
Other Key Estimates & Factors for Q1
Per the monthly metrics data published by Invesco, its preliminary total AUM as of Mar 31, 2022, was $1,555.9 billion, down 3.4% from the Dec 31, 2021 level. While the first quarter recorded overall asset inflows, AUM is likely to have been negatively impacted by unfavorable market returns.
Despite the decline in the AUM balance, the company’s investment management fee is expected to have improved. The Zacks Consensus Estimate for the same is pegged at $1.38 billion, indicating an increase of 9.2% on a sequential basis.
However, the consensus estimate for performance fees of $10.45 million indicates a decline of 69.4% from the prior quarter. Likewise, the consensus estimate for service and distribution fees of $394 million indicates a 2.7% sequential decline.
Nevertheless, the Zacks Consensus Estimate for other revenues is pegged at $66 million, suggesting a rise of 13.8% from the prior quarter.
On the cost front, while Invesco’s cost-saving initiatives are likely to have boosted its efficiency, the steady rise in compensation and marketing costs is expected to have had an adverse impact on the overall expense level in the quarter.
Management expects a $25-$30 million sequential increase in compensation expenses for first-quarter 2022. This relates to the seasonal increase in payroll taxes and the reset of other benefits, such as the 401k plan match.
What Our Model Predicts
Our proven model does not conclusively predict an earnings beat for Invesco this time around. 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 better.
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 Invesco is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Finance Stocks That Warrant a Look
A few finance stocks, which you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Northern Trust Corporation (NTRS - Free Report) and Independent Bank Corporation (IBCP - Free Report) .
The Earnings ESP for NTRS is +0.06%. Northern Trust carries a Zacks Rank #3 at present. NTRS is slated to report results on Apr 26.
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What is in the Offing for Invesco (IVZ) in Q1 Earnings?
Invesco (IVZ - Free Report) is slated to announce first-quarter 2022 results on Apr 26, before market open. While its earnings are expected to have witnessed a decline in the to-be-reported quarter, revenues are projected to have improved on a year-over-year basis.
In the last reported quarter, the company’s adjusted earnings outpaced the Zacks Consensus Estimate. Results reflected an improvement in revenues and solid growth in assets under management (AUM) balance.
Invesco has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the beat being 9.6%, on average.
Invesco Ltd. Price and EPS Surprise
Invesco Ltd. price-eps-surprise | Invesco Ltd. Quote
The Zacks Consensus Estimate for Invesco’s first-quarter earnings is pegged at 61 cents, which has moved 4.7% lower over the past seven days. The figure indicates a decline of 10.3% from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $1.29 billion, suggesting a year-over-year rise of 2.8%.
Other Key Estimates & Factors for Q1
Per the monthly metrics data published by Invesco, its preliminary total AUM as of Mar 31, 2022, was $1,555.9 billion, down 3.4% from the Dec 31, 2021 level. While the first quarter recorded overall asset inflows, AUM is likely to have been negatively impacted by unfavorable market returns.
Despite the decline in the AUM balance, the company’s investment management fee is expected to have improved. The Zacks Consensus Estimate for the same is pegged at $1.38 billion, indicating an increase of 9.2% on a sequential basis.
However, the consensus estimate for performance fees of $10.45 million indicates a decline of 69.4% from the prior quarter. Likewise, the consensus estimate for service and distribution fees of $394 million indicates a 2.7% sequential decline.
Nevertheless, the Zacks Consensus Estimate for other revenues is pegged at $66 million, suggesting a rise of 13.8% from the prior quarter.
On the cost front, while Invesco’s cost-saving initiatives are likely to have boosted its efficiency, the steady rise in compensation and marketing costs is expected to have had an adverse impact on the overall expense level in the quarter.
Management expects a $25-$30 million sequential increase in compensation expenses for first-quarter 2022. This relates to the seasonal increase in payroll taxes and the reset of other benefits, such as the 401k plan match.
What Our Model Predicts
Our proven model does not conclusively predict an earnings beat for Invesco this time around. 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 better.
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 Invesco is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Finance Stocks That Warrant a Look
A few finance stocks, which you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Northern Trust Corporation (NTRS - Free Report) and Independent Bank Corporation (IBCP - Free Report) .
The Earnings ESP for NTRS is +0.06%. Northern Trust carries a Zacks Rank #3 at present. NTRS is slated to report results on Apr 26.
Independent Bank is scheduled to release quarterly results on Apr 26. IBCP currently has a Zacks Rank #2 (Buy) and an Earnings ESP of +10.00%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.