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What's in the Cards for Affiliated Managers in Q3 Earnings?

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Affiliated Managers Group Inc. (AMG - Free Report) is slated to announce third-quarter 2024 results on Nov. 4, before the opening bell. Its earnings are expected to have increased year-over-year, while revenues are likely to fall.

See the Zacks Earnings Calendar to stay ahead of market-making news.

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

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 6.72%.

AMG’s Earnings & Sales Projections for Q3

The Zacks Consensus Estimate for AMG’s earnings is pegged at $4.82, which has moved 1% upward over the past month. The figure indicates an 18.1% rise from the year-ago quarter’s reported number. 

The company expects economic net income (controlling interest) of $148-$156 million. Economic earnings per share is predicted to be between $4.68 and $4.91.

The consensus estimate for sales is pegged at $5214 million, indicating almost 1% decline.

Key AMG Management Expectations for Q3

Management expects adjusted EBITDA in the $210-$220 million range based on the current AUM levels and seasonally lower net performance fee earnings of up to $10 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 $107 million and $114 million. The company’s share of reported amortization and impairments is estimated at 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 for AMG

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 Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Affiliated Managers is +1.10%.

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 AMG’s Peers

KKR & Co. Inc. (KKR - Free Report) reported a third-quarter 2024 adjusted net income per share of $1.38, which surpassed the Zacks Consensus Estimate of $1.18. However, the bottom line increased 56.8% from the prior-year quarter.

KKR’s results gained from impressive growth in AUM and record transaction fees from the capital markets business. However, increased expenses acted as a headwind.

Blackstone’s (BX - Free Report) third-quarter 2024 distributable earnings of $1.01 per share outpaced the Zacks Consensus Estimate of 91 cents. The figure reflects a rise of 7% from the prior-year quarter.

BX’s results benefited from higher revenues and AUM balance. However, an increase in GAAP expenses acted as a headwind.


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