Yahoo Finance Affiliated Managers (AMG) Q2 Earnings Beat as Revenues Rise
Affiliated Managers Group Inc.’s AMG second-quarter 2022 economic earnings of $4.03 per share surpassed the Zacks Consensus Estimate of $4.00. The bottom line was on par with the prior-year number. Our estimate for economic earnings per share was $4.27.
Results were aided by an improvement in revenues, partly offset by higher expenses and a fall in assets under management (AUM) balance. Further, the company had a robust liquidity position.
Economic net income was $160.5 million, down 6.3% from the prior-year quarter.
Revenues & Expenses Rise, AUM Falls
Total revenues rose 3% year over year to $604.1 million. Also, the top line beat the Zacks Consensus Estimate of $592.4 million. Our estimate for total revenues was $626 million.
Adjusted EBITDA was $213.4 million, down 6.1% from the year-ago quarter. Our estimate for the same was $218.9 million.
Total expenses increased 2.7% to $400.6 million. An increase in all cost components, except for other expenses, led to the rise.
As of Jun 30, 2022, total AUM was $690.9 billion, which declined 8.6% year over year. Net client cash outflows in the quarter were $11.4 billion.
Capital & Liquidity Position Decent
As of Jun 30, 2022, Affiliated Managers had $606.8 million in cash and cash equivalents compared with $908.5 billion as of Dec 31, 2021. The company had $2.53 billion of debt, which increased 1.8% from the Dec 31, 2021 level.
Shareholders’ equity as of Jun 30, 2022, was $2.74 billion compared with $2.79 billion as of Dec 31, 2021.
Share Repurchase Update
In the reported quarter, the company repurchased shares worth $80 million.
Our View
Affiliated Managers remains well-positioned for growth on the back of successful partnerships and global distribution capability, along with a diverse product mix. However, the presence of substantial intangible assets on the company's balance sheet and the tough operating backdrop are major concerns. Also, mounting expenses are hurting the bottom-line growth.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
Affiliated Managers Group, Inc. price-consensus-eps-surprise-chart | Affiliated Managers Group, Inc. Quote
Affiliated Managers currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
BlackRock, Inc.’s BLK second-quarter 2022 adjusted earnings of $7.36 per share missed the Zacks Consensus Estimate of $8.33. The figure reflects a decrease of 30% from the year-ago quarter.
BLK’s results were adversely impacted by an unfavorable operating backdrop, leading to lower revenues and AUM balance. A modest decline in expenses was a tailwind.
SEI Investments Co.’s SEIC second-quarter 2022 earnings of 81 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line reflects a decline of 12.9% from the prior-year quarter.
SEIC’s Results were hurt by a rise in expenses. However, growth in revenues and an increase in AUM balance were tailwinds.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report
SEI Investments Company (SEIC) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
