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Invesco (IVZ) Beats Q4 Earnings, Revenues and Costs Down

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Have you been eager to see how Invesco Ltd. (IVZ - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this GA-based asset manager’s earnings release this morning:

An Earnings Beat

Invesco came out with adjusted earnings of 59 cents per share, which surpassed the Zacks Consensus Estimate of 57 cents.
 
Lower expenses was mainly responsible for the earnings beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Invesco depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved 5% down over the last 30 days.

Also, Invesco doesn’t have a decent earnings surprise history. Before posting the earnings beat in Q4, the company delivered negative surprises in three of the prior four quarters, as evident from the chart below:

Invesco PLC Price and EPS Surprise
 

Invesco PLC Price and EPS Surprise | Invesco PLC Quote

Revenue Came In Lower Than Expected   

Invesco posted GAAP revenues of $1.19 billion, which missed the Zacks Consensus Estimate of $1.21 billion. Also, it compared unfavorably with the year-ago number of $1.24 billion.

Key Statistics:
 

  • Adjusted operating margin was 38.9%
  • Assets under management of $812.9 billion
  • Long-term net outflows were $2.7 billion


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Invesco. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this Invesco earnings report!

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