Affiliated Managers (AMG) Q3 Earnings Beat, Revenues Down
Zacks Investment Research | Oct 28, 2019 08:42AM ET
Affiliated Managers Group Inc.’s (NYSE:AMG) third-quarter 2019 economic earnings of $3.16 per share surpassed the Zacks Consensus Estimate of $3.14. However, the figure declined 8.4% year over year.
Results benefited from decline in operating expenses and robust liquidity position. However, lower revenues and fall in assets under management (AUM) balance were the undermining factors.
Economic net income was $159.4 million, down 13.4% from the prior-year quarter.
Revenues, AUM & Expenses Down
Total revenues fell 8.7% year over year to $549 million. However, the top line beat the Zacks Consensus Estimate of $542.5 million.
Adjusted earnings before interest, taxes, depreciation and amortization were $206.5 million, down 13.2% from the year-ago quarter.
Total expenses decreased 11.4% to $412.6 million. Lower compensation and related expenses, and selling, general and administrative costs primarily led to the decline.
As of Sep 30, 2019, total AUM was $750.7 billion, down 9.5% year over year. Net outflows of $19.7 billion hurt AUM.
Capital & Liquidity Position Decent
As of Sep 30, 2019, Affiliated Managers had $402.5 million in cash and cash equivalents compared with $565.5 million as of Dec 31, 2018. Notably, the company had $1.79 billion of debt, down 2.1% from the Dec 31, 2018 level.
Shareholders’ equity as of Sep 30, 2019, was $3.07 billion, down from $3.46 billion as of Dec 31, 2018.
Share Repurchase Update
During the third quarter, the company repurchased shares worth $110 million.
Also, Affiliated Managers increased the share repurchase authorization to a total of 8.2 million shares.
Our Take
Affiliated Managers’ muted revenue growth, owing to significant market volatility, remains a major concern. Nevertheless, it is well positioned for growth, based on successful partnerships and global distribution capability along with a diverse product mix.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.