Invesco Ltd. Set to Release Q1 Earnings with Mixed Outlook

Atlanta-based Invesco Ltd. (IVZ) is a global investment management firm focused on aiding clients in reaching their financial objectives. With a market capitalization of $5.7 billion, Invesco provides a variety of investment solutions, such as mutual funds, exchange-traded funds (ETFs), and private funds, serving retail, institutional, and high-net-worth clients around the globe.

Upcoming Earnings Report

The asset manager is scheduled to announce its first-quarter earnings before markets open on Tuesday, April 22. Analysts anticipate Invesco will report a non-GAAP profit of $0.40 per share, reflecting a significant increase of 21.2% from the $0.33 per share reported in the same quarter last year. Over the past four quarters, Invesco has missed analysts’ bottom-line estimates once, while managing to meet or exceed expectations on three occasions.

Fiscal Year Projections

Looking ahead, Invesco is projected to achieve earnings of $1.85 per share for fiscal 2025, representing an 8.2% rise from $1.71 per share in fiscal 2024. Additionally, forecasts suggest an increase to $2.04 per share in fiscal 2026, a 10.3% growth compared to the prior year.

Recent Stock Performance

Despite these positive earnings projections, IVZ stock has fallen by 23.7% over the past 52 weeks, considerably lagging behind the Financial Select Sector SPDR Fund (XLF), which gained 6.1%, and the S&P 500 Index ($SPX), which declined by 2.7% over the same period.

Revenue Challenges Ahead

Invesco has faced revenue pressures due to a continued shift in its assets under management (AUM) towards lower-fee products like ETFs. This trend is a reflection of the broader market’s preference for passive investment strategies, which generate lower fees for asset management firms.

Positive Q4 Results

Invesco saw its stock price surge nearly 9% following the release of its strong Q4 results on January 28. The firm reported $25.6 billion in net long-term inflows for the quarter, significantly boosting its AUM. Additionally, by reducing operating expenses, Invesco achieved margin expansion. Revenues rose by 5.1% year-over-year to reach $1.6 billion, exceeding market expectations. The firm’s adjusted net income increased 18.8% to $237.3 million, with adjusted earnings per share (EPS) of $0.55 beating consensus estimates by 6.1%, thereby enhancing investor confidence.

Analysts’ Ratings and Outlook

Despite the upbeat Q4 results, analysts express caution regarding the stock’s long-term outlook. The consensus opinion categorizes IVZ stock as neutral, assigning an overall “Hold” rating. Among the 18 analysts monitoring the stock, two recommend a “Strong Buy,” 15 advocate a “Hold,” and one suggests a “Strong Sell.” As of this writing, the stock trades significantly below its mean price target of $19.20.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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