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Affiliated Managers (AMG) Q2 Earnings Beat on Lower Expenses
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Affiliated Managers Group Inc.’s (AMG - Free Report) second-quarter 2024 economic earnings of $4.67 per share outpaced the Zacks Consensus Estimate of $4.60. The bottom line also grew 4.9% from the prior-year number.
Results were aided by an improvement in the assets under management (AUM) balance and a decline in expenses. Further, the company had a robust liquidity position. However, lower revenues were the undermining factor.
Economic net income was $155.9 million, up 6.8% year over year. Our estimate for this metric was $154.7 million.
Revenues Fall, Expenses Dip
Quarterly total revenues declined 2.4% year over year to $500.3 million. Also, the top line missed the Zacks Consensus Estimate of $520.03 million.
Adjusted EBITDA was $217.5 million, up 1.5%. We projected the metric to be $216.6 million.
Total consolidated expenses declined 4.1% to $359.4 million. We had projected total expenses of $401.7 million.
AUM Rises
As of Jun 30, 2024, the total AUM was $701 billion, which grew 4%. Our estimate for total AUM was $702.2 million.
Net client cash inflows were $0.9 billion in the reported quarter.
Capital & Liquidity Position Decent
As of Jun 30, 2024, Affiliated Managers had $865.5 million in cash and cash equivalents compared with $813.6 million as of Dec 31, 2023. The company had $2.53 billion of debt, down from $2.54 billion as of Dec 31, 2023.
Stockholders’ equity as of Jun 30, 2024, was $3.33 billion, down from $3.59 million as of Dec 31, 2023.
Share Repurchase Update
During the second quarter, Affiliated Managers repurchased shares worth $327 million.
Further, the company increased the buyback authorization, with 6 million shares available as of Jul 22, 2024.
Our View
Affiliated Managers is well-positioned for growth given the successful partnerships, global distribution capability and a diverse product mix. However, substantial intangible assets on the company's balance sheet and the tough operating backdrop are major concerns.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
T. Rowe Price Group, Inc. (TROW - Free Report) reported second-quarter 2024 adjusted earnings per share of $2.26, which beat the Zacks Consensus Estimate by a penny. Also, the bottom line increased 11.9% year over year.
TROW's net revenues were supported by a rise in the AUM balance. Further, appreciation in cash and cash equivalents will help the company to continue investing. However, a rise in expenses was a woe.
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2024 earnings of $1.05 per share surpassed the Zacks Consensus Estimate by a penny. The bottom line reflected a rise of 18% from the prior-year quarter's level.
Results benefited from higher revenues and an increase in the AUM balance. Higher expenses acted as a headwind for SEIC.
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Affiliated Managers (AMG) Q2 Earnings Beat on Lower Expenses
Affiliated Managers Group Inc.’s (AMG - Free Report) second-quarter 2024 economic earnings of $4.67 per share outpaced the Zacks Consensus Estimate of $4.60. The bottom line also grew 4.9% from the prior-year number.
Results were aided by an improvement in the assets under management (AUM) balance and a decline in expenses. Further, the company had a robust liquidity position. However, lower revenues were the undermining factor.
Economic net income was $155.9 million, up 6.8% year over year. Our estimate for this metric was $154.7 million.
Revenues Fall, Expenses Dip
Quarterly total revenues declined 2.4% year over year to $500.3 million. Also, the top line missed the Zacks Consensus Estimate of $520.03 million.
Adjusted EBITDA was $217.5 million, up 1.5%. We projected the metric to be $216.6 million.
Total consolidated expenses declined 4.1% to $359.4 million. We had projected total expenses of $401.7 million.
AUM Rises
As of Jun 30, 2024, the total AUM was $701 billion, which grew 4%. Our estimate for total AUM was $702.2 million.
Net client cash inflows were $0.9 billion in the reported quarter.
Capital & Liquidity Position Decent
As of Jun 30, 2024, Affiliated Managers had $865.5 million in cash and cash equivalents compared with $813.6 million as of Dec 31, 2023. The company had $2.53 billion of debt, down from $2.54 billion as of Dec 31, 2023.
Stockholders’ equity as of Jun 30, 2024, was $3.33 billion, down from $3.59 million as of Dec 31, 2023.
Share Repurchase Update
During the second quarter, Affiliated Managers repurchased shares worth $327 million.
Further, the company increased the buyback authorization, with 6 million shares available as of Jul 22, 2024.
Our View
Affiliated Managers is well-positioned for growth given the successful partnerships, global distribution capability and a diverse product mix. However, substantial intangible assets on the company's balance sheet and the tough operating backdrop are major concerns.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
Affiliated Managers Group, Inc. price-consensus-eps-surprise-chart | Affiliated Managers Group, Inc. Quote
Affiliated Managers currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
T. Rowe Price Group, Inc. (TROW - Free Report) reported second-quarter 2024 adjusted earnings per share of $2.26, which beat the Zacks Consensus Estimate by a penny. Also, the bottom line increased 11.9% year over year.
TROW's net revenues were supported by a rise in the AUM balance. Further, appreciation in cash and cash equivalents will help the company to continue investing. However, a rise in expenses was a woe.
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2024 earnings of $1.05 per share surpassed the Zacks Consensus Estimate by a penny. The bottom line reflected a rise of 18% from the prior-year quarter's level.
Results benefited from higher revenues and an increase in the AUM balance. Higher expenses acted as a headwind for SEIC.