AllianceBernstein Upped to Strong Buy - Analyst Blog

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On January 5, Zacks Investment Research upgraded AllianceBernstein Holding L.P. ( AB ) to a Zacks #1 Rank (Strong Buy).

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 net inflows.

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 frame.

Other Stocks to Consider

BlackRock, Inc. ( BLK ) and Franklin Resources Inc. ( BEN ) are the other investment management companies with a Zacks #2 Rank (Buy).



ALLIANCEBERNSTN (AB): Free Stock Analysis Report

FRANKLIN RESOUR (BEN): Free Stock Analysis Report

BLACKROCK INC (BLK): Free Stock Analysis Report

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Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AB , BEN , BLK

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