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What to Expect From Affiliated Managers (AMG) in Q2 Earnings

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Affiliated Managers Group Inc. (AMG - Free Report) is slated to report second-quarter 2024 results on Jul 29, before the opening bell. Its quarterly earnings and revenues are expected to have increased on a year-over-year basis.

In the last quarter, AMG’s earnings surpassed the Zacks Consensus Estimate. Results benefited from a rise in assets under management (AUM) balance. This was partly offset by a fall in revenues and modestly higher expenses.

The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in each of the trailing four quarters, with the average beat being 7.64%.
 

The Zacks Consensus Estimate for AMG’s second-quarter earnings is pegged at $4.60, which has moved almost 1% lower over the past month. The figure indicates a 3.4% rise from the year-ago quarter’s reported number. 

The company expects economic net income (controlling interest) of $152-$156 million. Economic earnings per share is predicted to be between $4.50 and $4.60.

The consensus estimate for sales is pegged at $520 million, indicating a 1.5% year-over-year rise.

Other Key Expectations for Q2

Management expects adjusted EBITDA in the $215-$220 million range based on the current AUM levels and seasonally lower net performance fee earnings of up to $10-$15 million.

Interest expenses are expected to be $34 million. 

Controlling interest depreciation is likely to be $2 million.

Net income (controlling interest) is expected to be between $110 million and $113 million. 

The company’s share of reported amortization and impairments is estimated to be approximately $26 million.

Intangible-related deferred taxes are projected to be $16 million. 

Other economic items, which now include realized gains, are anticipated to be roughly $1 million.

Earnings Whispers

Our quantitative model predicts an earnings beat for Affiliated Managers this time. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher.

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 Affiliated Managers is +0.17%.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

BlackRock’s (BLK - Free Report) second-quarter 2024 adjusted earnings of $10.36 per share handily surpassed the Zacks Consensus Estimate of $9.96. The figure reflects a rise of 12% from the year-ago quarter.

BLK’s results benefited from a rise in revenues. AUM witnessed solid improvement driven by net inflows and market appreciation. However, higher expenses and a fall in non-operating income acted as headwinds.

Invesco’s (IVZ - Free Report) second-quarter 2024 adjusted earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 41 cents. The bottom line increased 38.7% from the prior-year quarter.

Results were primarily aided by lower adjusted expenses. An increase in AUM balance on decent inflows was a positive. However, marginally lower adjusted revenues acted as a spoilsport for IVZ.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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