Invesco IVZ is set to unveil its performance during the fourth quarter and full-year 2023 on Jan 23, before market open. A stern outlook is anticipated, with expectations of reduced quarterly earnings and revenues on a year-over-year basis.
The company’s prior-quarter adjusted earnings fell short of the Zacks Consensus Estimate due to escalating operating expenses and shrinking revenues. However, a surge in assets under management (AUM) proved to be a silver lining.
Invesco’s past has not been one of impressive earnings surprises. In the last four quarters, it surpassed the Zacks Consensus Estimate twice and failed to meet it on two occasions.
Invesco Ltd. Price and EPS Surprise
Invesco Ltd. price-eps-surprise | Invesco Ltd. Quote
The Zacks Consensus Estimate for Invesco’s fourth-quarter earnings is 38 cents, marking a 2.6% decline from the prior-year quarter. The consensus estimate for sales is $1.11 billion, suggesting a marginal year-over-year decrease.
Other Key Q4 Estimates & Factors to Note
According to Invesco’s monthly metrics data, its preliminary total AUM as of Dec 31, 2023, experienced a 6.6% increase from the Sep 30, 2023 level. This growth was driven by robust market returns and inflows during the fourth quarter.
The surge in AUM balance is expected to have a positive impact on the company’s investment management fee. However, the consensus estimate for performance fees indicates a significant drop from the prior-year quarter. Moreover, despite the company’s cost-saving efforts, a steady rise in compensation and marketing costs is likely to have adversely impacted overall expenses in the to-be-reported quarter.
What Our Model Predicts
Our proven model suggests that Invesco has a high probability of beating the Zacks Consensus Estimate this time around, backed by a positive Earnings ESP of +0.63% and a Zacks Rank #3 (Hold).
Deduce which stocks you should invest in or divest from before their earnings release using our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Invesco is +0.63%
Zacks Rank: The company currently holds a Zacks Rank #3.
Other Finance Stocks That Warrant a Look
Other finance companies that are worth considering, as per our model, are SEI Investments Company (SEIC) with an Earnings ESP of +2.40% and a Zacks Rank #2 (Buy), and Raymond James (RJF) with an Earnings ESP of +0.81% and a Zacks Rank #2.
Make informed investment decisions by staying updated with upcoming earnings announcements using the Zacks Earnings Calendar.
