Yahoo Finance Invesco (IVZ) Beats on Q1 Earnings, Revenue Misses
Have you been eager to see how Invesco Ltd. IVZ performed in Q1 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 61 cents per share, which surpassed the Zacks Consensus Estimate of 56 cents.
Increase in revenues mainly drove the earnings beat.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Invesco depicted optimism prior to the earnings release. The Zacks Consensus Estimate has moved 3.7% upward over the last 30 days.
Also, Invesco have a decent earnings surprise history. Before posting the earnings beat in Q1, the company delivered positive surprises in two 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 $1.22 billion. However, it compared favorably with the year-ago number of $1.15 billion.
Key Statistics:
Adjusted operating margin was 37.7%
Assets under management of $834.8 billion
Long-term net inflows were $1.8 billion
Dividend raised 3.6% to 29 cents per share
Concurrently, Invesco announced a definitive agreement to acquire Europe-based Source, a leading, independent specialist provider of exchange-traded funds (ETFs). The transaction includes nearly $18 billion in Source-managed AUM and roughly $7 billion in externally managed AUM (as of Mar 31, 2017).
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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Invesco PLC (IVZ): Free Stock Analysis Report
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