AllianceBernstein Holding L.P.
) posted impressive third quarter results late last month, which
boosted 4 out of 5 total estimates for 2012 in the last 30 days.
This Zacks #1 Rank (Strong Buy) global investment management firm
has now surpassed the Zacks Consensus Estimate for three straight
quarters. It also hit a new 52-week high on November 23 and jumped
Impressive Third Quarter Results
AllianceBernstein's third quarter adjusted earnings per share of 36
cents surpassed the Zacks Consensus Estimate by 33.3% and the
year-ago earnings by 20%. The improvement was primarily thanks to a
decrease in expenses.
Net revenues (adjusted basis) declined 5% year over year to $574
million, due mainly to a drop in base fees on lower average assets
and reduced Bernstein Research Services revenues. However,
operating expenses of $458 million declined 7% year over year,
reflecting reductions in compensation and benefits, promotion and
servicing as well as general and administrative expenses. Operating
income grew 8% year over year to $116 million, as expense
reductions outpaced the year-over-year decline in revenues.
As of September 30, 2012, total assets under management (AUM) grew
4.2% from the year-ago quarter to $418.9 billion. Net outflows of
$4.4 billion were $11.0 billion lower from the prior-year period.
Earnings Momentum on the Rise
The past 30 days have seen an advance in 4 out of 5 estimates for
2012, lifting the Zacks Consensus Estimate by 13.0% to $1.22 per
share. For 2013, the Zacks Consensus Estimate is up 10.2% to $1.40
as 6 of 7 estimates were enhanced. The Zacks Consensus Estimate for
2012 reflects year-over-year growth of about 6.8%, while the growth
rate for 2013 is 15.2%.
Chart Shows Strength
AllianceBernstein has enjoyed strong price momentum since the third
quarter earnings release. Moreover, the company has been
continuously outperforming its 200-day and 50-day moving averages
and the S&P 500 over the last three months. The year-to-date
return for the stock is 44.9%, compared with the S&P 500's
return of 10.3%.
Based in New York, New York and founded in 1987, AllianceBernstein
offers research, diversified investment management and related
services to a range of clients in the United States and
internationally. Furthermore, it provides distribution, shareholder
servicing and administrative services to its sponsored mutual
funds. The company serves clients in major global markets through
operations in 46 cities. AllianceBernstein Corporation serves as
the general partner of the company while AllianceBernstein Holding
L.P. operates as a subsidiary of AXA. With a market cap of about
$1.9 billion, AllianceBernstein competes with Virtus Investment
Partners, Inc. (
), among others.
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