Affiliated Managers Group Inc.
) second-quarter 2013 economic net income (ENI) came in at $2.18
per share, beating the Zacks Consensus Estimate of $2.10.
Moreover, this compared favorably with ENI of $1.66 recorded in
the year-ago quarter.
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Better-than-expected results were aided by growth in top line and
a decline in operating expenses. Moreover, continued improvement
in asset under management (AUM) and a strong balance sheet were
the other positives for the quarter.
Affiliated Managers' ENI came in at $121.1 million, surging 38.2%
from $87.6 million in the year-ago quarter.
Behind the Headlines
Affiliated Managers' total revenue augmented 25.9% year over year
to $541.0 million. Moreover, it surpassed the Zacks Consensus
Estimate of $528.0 million by 2.5%. EBITDA was $173.0 million,
rising 52.2% compared with $113.7 million in the prior quarter.
Total operating expenses declined 6.2% year over year to $379.6
million. The fall was primarily due to a sizeable decline in
intangible amortization and impairment costs, depreciation and
other amortizations expenses as well as other operating expenses,
partially offset by a rise in compensation and related expenses
along with selling, general and administrative expenses.
Assets Under Management
As of Jun 30, 2013, total AUM reached $469.5 billion, reflecting
net client cash flow of $13.2 billion. This compared favorably
with $462.5 billion recorded in the prior quarter.
As of Jun 30, 2013, mutual fund AUM stood at $142.8 billion, up
6.0% sequentially. However, institutional AUM came in at $267.5
billion, down 0.4% sequentially. Further, high net worth AUM were
$59.2 billion, almost flat sequentially.
Capital and Liquidity
As of Jun 30, 2013, Affiliated Managers had $413.8 million in
cash and cash equivalents compared with $430.4 million as of Dec
31, 2012. Moreover, the company had $100.0 million as senior bank
debt at the end of the quarter compared with $325.0 million as of
Dec 31, 2012. Furthermore, the company had shareholders' equity
of $2.2 billion compared with $2.1 billion as of Dec 31, 2012.
Performance of Other Asset Managers
Ameriprise Financial, Inc
The Blackstone Group L.P
) reported better-than-expected second-quarter earnings. Results
for all three companies were driven by top-line growth, partially
offset by higher operating expenses.
Affiliated Managers is expected to benefit from investment
appreciation in the near term. Moreover, growing need for risk
management and alternative investment solutions within the
financial service industry is anticipated to prove accretive to
the financials of the company going forward. However, a slow
economic recovery is expected to keep the company's financials
Affiliated Managers currently carries a Zacks Rank #4 (Sell).