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Invesco (IVZ) Set to Report Q2 Earnings: What's in Store?
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Invesco (IVZ - Free Report) is slated to announce second-quarter 2023 results on Jul 25, before market open. While its earnings are expected to have witnessed an increase on a year-over-year basis, revenues are likely to have declined.
In the last reported quarter, the company’s adjusted earnings beat the Zacks Consensus Estimate. Results benefited from lower expenses. However, a decline in assets under management (AUM) balance and a rise in long-term outflows hurt revenues.
Invesco does not have an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two and lagged in two of the trailing four quarters.
The Zacks Consensus Estimate for Invesco’s second-quarter earnings is pegged at 40 cents, which has been revised 2.6% north over the past seven days. The figure indicates a rise of 2.6% from the year-ago quarter’s reported number. Our estimate for earnings is 34 cents.
The consensus estimate for sales is pegged at $1.09 billion, suggesting a year-over-year fall of 6.8%. Our estimate for the same is $1.08 billion, implying a decline of 8%.
Other Key Estimates & Factors to Note
Per the monthly metrics data published by Invesco, its preliminary total AUM as of Jun 30, 2023, was $1,538.2 billion, up 3.7% from the Mar 31, 2023 level. In the second quarter, AUM was favorably impacted by decent market returns and solid inflows.
Given the sequential rise in the AUM balance, the company’s investment management fee is expected to have improved from the previous quarter. The Zacks Consensus Estimate for investment management fee is pegged at $1.12 billion, indicating an increase of 8.9% on a sequential basis. Our estimate for the same is $1.02 billion.
The consensus estimate for performance fees of $10 million indicates a jump of 78.4% from the prior quarter. Our estimate for the same is $17.8 million.
The consensus estimate for service and distribution fees of $344 million indicates a 2.9% sequential rise. Our estimate for the same is $330.4 million. The Zacks Consensus Estimate for other revenues is pegged at $52.1 million, suggesting a rise of 3.1%. Our estimate for other revenues is $48.1 million.
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 overall expenses in the to-be-reported quarter. Management expects operating expenses to be stable on a sequential basis in the second quarter. Also, the company will incur roughly $20 million of additional costs related to executive retirement. Our estimate for total expenses (GAAP) is $1.23 billion, up 1.7% sequentially.
What Our Model Predicts
According to our proven model, the chances of Invesco beating the Zacks Consensus Estimate this time are high. This is because it has 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 +1.27%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Asset Managers That Warrant a Look
Here are a couple of asset managers that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
The Earnings ESP for SEI Investments (SEIC - Free Report) is +0.78% and it carries a Zacks Rank #2 (Buy) at present. The company is slated to report second-quarter 2023 results on Jul 26.
Over the past 30 days, the Zacks Consensus Estimate for SEIC’s quarterly earnings has moved 1.2% north.
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Invesco (IVZ) Set to Report Q2 Earnings: What's in Store?
Invesco (IVZ - Free Report) is slated to announce second-quarter 2023 results on Jul 25, before market open. While its earnings are expected to have witnessed an increase on a year-over-year basis, revenues are likely to have declined.
In the last reported quarter, the company’s adjusted earnings beat the Zacks Consensus Estimate. Results benefited from lower expenses. However, a decline in assets under management (AUM) balance and a rise in long-term outflows hurt revenues.
Invesco does not have an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two and lagged in two of the trailing four quarters.
Invesco Ltd. Price and EPS Surprise
Invesco Ltd. price-eps-surprise | Invesco Ltd. Quote
The Zacks Consensus Estimate for Invesco’s second-quarter earnings is pegged at 40 cents, which has been revised 2.6% north over the past seven days. The figure indicates a rise of 2.6% from the year-ago quarter’s reported number. Our estimate for earnings is 34 cents.
The consensus estimate for sales is pegged at $1.09 billion, suggesting a year-over-year fall of 6.8%. Our estimate for the same is $1.08 billion, implying a decline of 8%.
Other Key Estimates & Factors to Note
Per the monthly metrics data published by Invesco, its preliminary total AUM as of Jun 30, 2023, was $1,538.2 billion, up 3.7% from the Mar 31, 2023 level. In the second quarter, AUM was favorably impacted by decent market returns and solid inflows.
Given the sequential rise in the AUM balance, the company’s investment management fee is expected to have improved from the previous quarter. The Zacks Consensus Estimate for investment management fee is pegged at $1.12 billion, indicating an increase of 8.9% on a sequential basis. Our estimate for the same is $1.02 billion.
The consensus estimate for performance fees of $10 million indicates a jump of 78.4% from the prior quarter. Our estimate for the same is $17.8 million.
The consensus estimate for service and distribution fees of $344 million indicates a 2.9% sequential rise. Our estimate for the same is $330.4 million. The Zacks Consensus Estimate for other revenues is pegged at $52.1 million, suggesting a rise of 3.1%. Our estimate for other revenues is $48.1 million.
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 overall expenses in the to-be-reported quarter. Management expects operating expenses to be stable on a sequential basis in the second quarter. Also, the company will incur roughly $20 million of additional costs related to executive retirement. Our estimate for total expenses (GAAP) is $1.23 billion, up 1.7% sequentially.
What Our Model Predicts
According to our proven model, the chances of Invesco beating the Zacks Consensus Estimate this time are high. This is because it has 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 +1.27%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Other Asset Managers That Warrant a Look
Here are a couple of asset managers that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
The Earnings ESP for SEI Investments (SEIC - Free Report) is +0.78% and it carries a Zacks Rank #2 (Buy) at present. The company is slated to report second-quarter 2023 results on Jul 26.
Over the past 30 days, the Zacks Consensus Estimate for SEIC’s quarterly earnings has moved 1.2% north.
Ameriprise (AMP - Free Report) is also scheduled to release second-quarter 2023 earnings on Jul 26. The company, which carries a Zacks Rank #3 at present, has an Earnings ESP of +0.11%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMP’s quarterly earnings estimates have moved almost 1% lower over the past month.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.