We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Affiliated Managers (AMG) Q3 Earnings Beat as Revenues Rise
Read MoreHide Full Article
Affiliated Managers Group Inc. (AMG - Free Report) reported third-quarter 2017 economic earnings of $3.41 per share, outpacing the Zacks Consensus Estimate of $3.36. Also, earnings were up 12.2% year over year.
Higher revenues and a fall expenses primarily drove earnings. Also, the quarter witnessed solid growth in assets under management (AUM).
Affiliated Managers’ economic net income was $191.3 million, an increase of 15.6% from the prior-year quarter.
Revenues Rise, Expenses Decline
Total revenues grew 7.5% year over year to $585.7 million. However, the top line missed the Zacks Consensus Estimate of $590.4 million.
Earnings before interest, taxes, depreciation and amortization were $256.3 million, up 16.6% from the year-ago quarter.
Total operating expenses dipped 1.8% year over year to $366.9 million. The decline was primarily due to lower selling, general and administrative expenses, and compensation and related expenses.
As of Sep 30, 2017, total AUM grew 19.5% year over year to $803.7 billion. The quarter also witnessed net client cash inflow of $3.1 billion.
Capital Position Deteriorates, Liquidity Position Decent
As of Sep 30, 2017, Affiliated Managers had $374.7 million in cash and cash equivalents compared with $430.8 million as of Dec 31, 2016. Notably, the company had $868.9 million of senior bank debt compared with $868.6 million as of Dec 31, 2016.
Shareholders’ equity as of Sep 30, 2017, totaled $3.63 billion, up from $3.62 billion as of Dec 31, 2016.
Share Repurchases
During the reported quarter, the company repurchased $74 million worth of common stock.
Our Take
Affiliated Managers remains well positioned for future growth based on successful partnerships and global distribution capability, along with a diverse product mix. However, we remain concerned about the impact of increased debt levels and higher intangibles on its near-term profitability.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
The Blackstone Group L.P. (BX - Free Report) reported third-quarter 2017 economic net income of 69 cents per share, which beat the Zacks Consensus Estimate of 57 cents. Improvement in revenues largely boosted earnings. However, a rise in expenses was an undermining factor.
BlackRock, Inc. (BLK - Free Report) reported third-quarter 2017 adjusted earnings of $5.92 per share, which outpaced the Zacks Consensus Estimate of $5.59. Results benefited from improvement in revenues, rise in AUM and steady long-term inflows. However, increase in operating expenses acted as a headwind.
Waddell & Reed Financial Inc.’s third-quarter 2017 earnings of 45 cents per share outpaced the Zacks Consensus Estimate of 40 cents. Higher gross sales and a decline in net outflows marginally supported the results. However, lower revenues and a rise in expenses were the undermining factors.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Image: Bigstock
Affiliated Managers (AMG) Q3 Earnings Beat as Revenues Rise
Affiliated Managers Group Inc. (AMG - Free Report) reported third-quarter 2017 economic earnings of $3.41 per share, outpacing the Zacks Consensus Estimate of $3.36. Also, earnings were up 12.2% year over year.
Higher revenues and a fall expenses primarily drove earnings. Also, the quarter witnessed solid growth in assets under management (AUM).
Affiliated Managers’ economic net income was $191.3 million, an increase of 15.6% from the prior-year quarter.
Revenues Rise, Expenses Decline
Total revenues grew 7.5% year over year to $585.7 million. However, the top line missed the Zacks Consensus Estimate of $590.4 million.
Earnings before interest, taxes, depreciation and amortization were $256.3 million, up 16.6% from the year-ago quarter.
Total operating expenses dipped 1.8% year over year to $366.9 million. The decline was primarily due to lower selling, general and administrative expenses, and compensation and related expenses.
As of Sep 30, 2017, total AUM grew 19.5% year over year to $803.7 billion. The quarter also witnessed net client cash inflow of $3.1 billion.
Capital Position Deteriorates, Liquidity Position Decent
As of Sep 30, 2017, Affiliated Managers had $374.7 million in cash and cash equivalents compared with $430.8 million as of Dec 31, 2016. Notably, the company had $868.9 million of senior bank debt compared with $868.6 million as of Dec 31, 2016.
Shareholders’ equity as of Sep 30, 2017, totaled $3.63 billion, up from $3.62 billion as of Dec 31, 2016.
Share Repurchases
During the reported quarter, the company repurchased $74 million worth of common stock.
Our Take
Affiliated Managers remains well positioned for future growth based on successful partnerships and global distribution capability, along with a diverse product mix. However, we remain concerned about the impact of increased debt levels and higher intangibles on its near-term profitability.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise | Affiliated Managers Group, Inc. Quote
Currently, Affiliated Managers 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
The Blackstone Group L.P. (BX - Free Report) reported third-quarter 2017 economic net income of 69 cents per share, which beat the Zacks Consensus Estimate of 57 cents. Improvement in revenues largely boosted earnings. However, a rise in expenses was an undermining factor.
BlackRock, Inc. (BLK - Free Report) reported third-quarter 2017 adjusted earnings of $5.92 per share, which outpaced the Zacks Consensus Estimate of $5.59. Results benefited from improvement in revenues, rise in AUM and steady long-term inflows. However, increase in operating expenses acted as a headwind.
Waddell & Reed Financial Inc.’s third-quarter 2017 earnings of 45 cents per share outpaced the Zacks Consensus Estimate of 40 cents. Higher gross sales and a decline in net outflows marginally supported the results. However, lower revenues and a rise in expenses were the undermining factors.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>