Invesco Reports Strong Q3 Earnings: AUM and Revenues Show Positive Trends
Invesco’s IVZ third-quarter 2024 adjusted earnings reached 44 cents per share, aligning with the Zacks Consensus Estimate and marking a significant 25.7% increase from the previous year.
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Key factors contributing to these results included a decrease in adjusted expenses and a rise in adjusted net revenues. Additionally, an increase in the assets under management (AUM) due to solid inflows positively impacted the outcome. As a result, Invesco’s shares climbed 1% in pre-market trading.
The reported quarter’s results included some noteworthy items. After adjustments, net income attributable to common shareholders amounted to $55 million, or 12 cents per share, reflecting a sharp 58.6% drop from the same period last year.
Revenue Growth and Cost Management at Invesco
Adjusted net revenues hit $1.10 billion, showing slight year-over-year growth. This figure, however, narrowly missed the Zacks Consensus Estimate of $1.11 billion.
Moreover, adjusted operating expenses decreased to $755.5 million, down 4.2% compared to last year.
The adjusted operating margin improved to 31.6%, up from 28.2% a year ago, indicating better management of costs.
AUM Growth Highlights Invesco’s Success
As of September 30, 2024, Invesco’s AUM reached $1.80 trillion, climbing 20.7% year-over-year. The average AUM at the end of the third quarter stood at $1.74 trillion, an increase of 14%.
During this quarter, the company experienced long-term net inflows of $16.5 billion, adding to its positive momentum.
Invesco Maintains a Strong Balance Sheet
As of September 30, 2024, Invesco had cash and cash equivalents totaling $1.04 billion, up from $878.5 million as of June 30, 2024. Meanwhile, long-term debt stood at $890.3 million.
Outlook on Invesco (IVZ)
Invesco appears well-positioned to capitalize on its global presence, diverse product portfolio, and strategic acquisitions. Efforts to enhance efficiency could keep expenses manageable. However, challenges include a tough operating environment and elevated levels of intangible assets on the balance sheet.
Invesco Ltd. Price, Consensus and EPS Surprise
Currently, IVZ holds a Zacks Rank #2 (Buy). You can view the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Comparative Performance of Other Asset Managers
BlackRock’s BLK third-quarter 2024 adjusted earnings reached $11.46 per share, significantly exceeding the Zacks Consensus Estimate of $10.34 and representing a 5% increase from the prior-year quarter.
BLK’s results were bolstered by increased revenues and non-operating income. Its AUM grew robustly, reaching $11.45 trillion thanks to net inflows and market appreciation, although higher expenses posed a challenge.
Blackstone’s BX third-quarter 2024 distributable earnings of $1.01 per share surpassed the Zacks Consensus Estimate of 91 cents, reflecting a 7% rise from the same period last year.
BX benefitted from higher revenues and improved AUM, though rising GAAP expenses acted as a hindrance.
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