Affiliated Managers (AMG) Q3 Earnings Beat, AUM Balance Down

Affiliated Managers Group Inc.’s AMG third-quarter 2020 economic earnings of $3.27 per share surpassed the Zacks Consensus Estimate of $2.86. Also, the bottom line grew 3.5% year over year.

The results reflect lower operating expenses and a robust liquidity position. However, lower revenues, fall in assets under management (AUM) balance and decline in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were headwinds.

Economic net income was $152.1 million, down 4.6% from the prior-year quarter.

Revenues & AUM Down, Expenses Fall

Total revenues fell 9.9% year over year to $494.8 million. However, the top line beat the Zacks Consensus Estimate of $478.4 million.

Adjusted EBITDA was $181.2 million, down 12.3% from the year-ago quarter.

Total expenses decreased 3.8% to $359.2 million. Decline in compensation and related expenses, and selling, general and administrative costs primarily led to the fall.

As of Sep 30, 2020, total AUM was $653.5 billion, down 12.9% year over year. Net client cash outflows of $14 billion hurt AUM.

Capital & Liquidity Position Decent

As of Sep 30, 2020, Affiliated Managers had $929.4 million in cash and cash equivalents compared with $539.6 million on Dec 31, 2019. The company had $2.3 billion of debt, up 28.8% from the Dec 31, 2019 level.

Shareholders’ equity as of Sep 30, 2020 was $2.8 billion compared with $2.9 billion as of Dec 31, 2019.

Share Repurchase Update

During the third quarter, the company repurchased shares worth $85 million.

Our Take

Affiliated Managers is well positioned for growth on the back of successful partnerships and global distribution capability, along with a diverse product mix. However, muted revenue growth and decline in AUM balance remain major concerns.

Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise

Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise

Affiliated Managers Group, Inc. price-consensus-eps-surprise-chart | Affiliated Managers Group, Inc. Quote

Affiliated Managers currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

SEI Investments Co.’s SEIC third-quarter 2020 earnings of 75 cents per share lagged the Zacks Consensus Estimate of 81 cents. Moreover, the figure reflects a decline of 12.8% from the prior-year quarter.

Cohen & SteersCNS third-quarter 2020 adjusted earnings of 67 cents per share surpassed the Zacks Consensus Estimate of 60 cents. Moreover, the bottom line was 3.1% higher than the year-ago reported figure.

BlackRock, Inc.’s BLK third-quarter 2020 adjusted earnings of $9.22 per share surpassed the Zacks Consensus Estimate of $7.81. The figure reflects a rise of 29% from the year-ago quarter’s number.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.  

Click here for the 6 trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
BlackRock, Inc. (BLK): Free Stock Analysis Report
Affiliated Managers Group, Inc. (AMG): Free Stock Analysis Report
Cohen Steers Inc (CNS): Free Stock Analysis Report
SEI Investments Company (SEIC): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

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

Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More