On January 5, Zacks Investment Research upgraded
AllianceBernstein Holding L.P.
) to a Zacks #1 Rank (Strong Buy).
ALLIANCEBERNSTN (AB): Free Stock Analysis
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Why the Upgrade?
AllianceBernstein has been witnessing rising earnings estimates
on the back of strong third-quarter 2012 results. Moreover, this
well-known investment manager delivered positive earnings
surprises in 3 of the last 4 quarters. The long-term expected
earnings growth rate for this stock is 6.3%.
AllianceBernstein reported third-quarter results on October 24.
Adjusted earnings per share came in at 36 cents, surpassing the
Zacks Consensus Estimate of 27 cents by 33.3% and year-ago
earnings of 30 cents by 20.0%.
Notably, the company's Distribution per unit came in at 36 cents,
reflecting 38.0% increase over the prior-year quarter.
Earnings were primarily aided by solid operating income
year-over-year growth of 8.0%, partially offset by a 35.0%
increase in operating expenses. Total net outflows of $4.4
billion also significantly reduced from $11.0 billion recorded in
the prior-year period. However, net revenues stood at $574.0
million, down 5.0% year over year.
Currently, AllianceBernstein reported its preliminary assets
under management (AUM) of $426.0 billion for the month of
November 2012, up 1.7% over the prior month, reflecting continued
The Zacks Consensus Estimate for 2012 increased 16.2% to $1.22
per share over the last 90 days. For 2013, the Zacks Consensus
Estimate jumped 17.5% to $1.41 per share over the same time
Other Stocks to Consider
Franklin Resources Inc.
) are the other investment management companies with a Zacks #2