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.
Outflows, Decline in Assets to Hurt Invesco (IVZ) Q1 Earnings
Read MoreHide Full Article
Invesco (IVZ - Free Report) is slated to announce first-quarter 2020 results on Apr 23, before market open. While its revenues are expected to have grown in the quarter, earnings are likely to have witnessed no change from the prior-year quarter.
In the last reported quarter, the company’s adjusted earnings missed the Zacks Consensus Estimate. Results reflected higher assets under management (AUM) balance and a rise in revenues, driven by the OppenheimerFunds buyout. However, higher expenses and net outflows were offsetting factors.
Invesco has an impressive earnings surprise history. The company’s earnings surpassed the consensus mark in three of the trailing four quarters, the average positive surprise being 9%.
However, the company’s activities and business prospects in the to-be-reported quarter along with concerns related to the impact of coronavirus failed to encourage analysts to revise estimates upward. The Zacks Consensus Estimate for Invesco’s first-quarter earnings of 56 cents has moved 5.1% lower over the past 30 days. The figure indicates no change from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $1.71 billion, which suggests 40.4% growth year over year.
Before we take a look at what our quantitative model predicts, let’s check the factors that are expected to have influenced Invesco’s first-quarter performance.
Factors to Note
Per the monthly metrics data published by Invesco, preliminary total AUM as of Mar 31, 2020, was $1,053.4 billion, down 14.1% from the Dec 31, 2019-level. The decline was mainly due to net outflows and unfavorable market returns.
Hence, performance fees and investment management fees are likely to have been negatively impacted in the quarter.
Nonetheless, the consensus mark for service and distribution fees of $381 million indicates 1% sequential growth.
While Invesco’s initiatives to manage costs have helped in improving efficiency, continued rise in compensation and marketing costs have led to an increase in overall expenses over the past few years. Given its inorganic growth strategy and investments in franchise, expenses are expected to have remained elevated in the first quarter as well.
Earnings Whispers
Per the Zacks model, the chances of Invesco beating the Zacks Consensus Estimate are low this time around. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
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 Invesco is -3.44%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Here are some finance stocks you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases, per our model.
CURO Group Holdings Corp. is slated to release quarterly results on Apr 30. The company has an Earnings ESP of +1.47% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Virtu Financial, Inc. (VIRT - Free Report) is scheduled to report quarterly earnings on May 7. The company, which sports a Zacks Rank of 1 at present, has an Earnings ESP of +41.57%.
SB One Bancorp is likely to report quarterly earnings soon. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +0.85%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Outflows, Decline in Assets to Hurt Invesco (IVZ) Q1 Earnings
Invesco (IVZ - Free Report) is slated to announce first-quarter 2020 results on Apr 23, before market open. While its revenues are expected to have grown in the quarter, earnings are likely to have witnessed no change from the prior-year quarter.
In the last reported quarter, the company’s adjusted earnings missed the Zacks Consensus Estimate. Results reflected higher assets under management (AUM) balance and a rise in revenues, driven by the OppenheimerFunds buyout. However, higher expenses and net outflows were offsetting factors.
Invesco has an impressive earnings surprise history. The company’s earnings surpassed the consensus mark in three of the trailing four quarters, the average positive surprise being 9%.
Invesco Ltd. Price and EPS Surprise
Invesco Ltd. price-eps-surprise | Invesco Ltd. Quote
However, the company’s activities and business prospects in the to-be-reported quarter along with concerns related to the impact of coronavirus failed to encourage analysts to revise estimates upward. The Zacks Consensus Estimate for Invesco’s first-quarter earnings of 56 cents has moved 5.1% lower over the past 30 days. The figure indicates no change from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $1.71 billion, which suggests 40.4% growth year over year.
Before we take a look at what our quantitative model predicts, let’s check the factors that are expected to have influenced Invesco’s first-quarter performance.
Factors to Note
Per the monthly metrics data published by Invesco, preliminary total AUM as of Mar 31, 2020, was $1,053.4 billion, down 14.1% from the Dec 31, 2019-level. The decline was mainly due to net outflows and unfavorable market returns.
Hence, performance fees and investment management fees are likely to have been negatively impacted in the quarter.
Nonetheless, the consensus mark for service and distribution fees of $381 million indicates 1% sequential growth.
While Invesco’s initiatives to manage costs have helped in improving efficiency, continued rise in compensation and marketing costs have led to an increase in overall expenses over the past few years. Given its inorganic growth strategy and investments in franchise, expenses are expected to have remained elevated in the first quarter as well.
Earnings Whispers
Per the Zacks model, the chances of Invesco beating the Zacks Consensus Estimate are low this time around. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
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 Invesco is -3.44%.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Here are some finance stocks you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases, per our model.
CURO Group Holdings Corp. is slated to release quarterly results on Apr 30. The company has an Earnings ESP of +1.47% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Virtu Financial, Inc. (VIRT - Free Report) is scheduled to report quarterly earnings on May 7. The company, which sports a Zacks Rank of 1 at present, has an Earnings ESP of +41.57%.
SB One Bancorp is likely to report quarterly earnings soon. The company, which carries a Zacks Rank of 3 at present, has an Earnings ESP of +0.85%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>