Affiliated Managers (AMG) Q4 Earnings Top, Revenues Down Y/Y

Affiliated Managers Group Inc.’s AMG fourth-quarter 2023 economic earnings of $6.86 per share handily outpaced the Zacks Consensus Estimate of $6.00. The bottom line, however, declined 7.3% from the prior-year number.

Results were aided by lower expenses and improvement in assets under management (AUM) balance, partially offset by a decline in revenues. Further, the company had a robust liquidity position.

Economic net income was $242.9 million, down 16.3% year over year. Our estimate for this metric was $195.2 million.

For 2023, economic earnings of $19.48 per share handily outpaced the Zacks Consensus Estimate of $18.70 but fell 2.7% year over year. Economic net income was $717.8 million, down 10%. Our estimate for this metric was $670.1 million.

Revenues & Expenses Decline, AUM Rises

Quarterly total revenues declined 6.8% year over year to $502.7 million. Also, the top line missed the Zacks Consensus Estimate of $532 million.

For 2023, total revenues were $2.06 billion, down 11.7%. The top line lagged the consensus estimate of $2.09 billion.

Adjusted EBITDA was $296.2 million, down 21.6% from the year-ago quarter. We projected the metric to be $265.9 million.

Total consolidated expenses decreased 15.1% to $384.1 million. Lower compensation and related expenses and selling, general and administrative charges primarily led to the fall. We had projected total expenses of $368 million.

As of Dec 31, 2023, total AUM was $672.7 billion, which grew 3.4%. Net client cash outflows in the quarter were $6.1 billion in the reported quarter.

Capital & Liquidity Position Decent

As of Dec 31, 2023, Affiliated Managers had $813.6 million in cash and cash equivalents compared with $429.2 million as of Dec 31, 2022. The company had $2.54 billion of debt, relatively stable year over year.

Shareholders’ equity as of Dec 31, 2023, was $3.59 billion compared with $3.23 billion as of Dec 31, 2022.

Share Repurchase Update

During the fourth quarter, Affiliated Managers repurchased shares worth $133 million.

Our Viewpoint

Affiliated Managers remains well-positioned for growth on the back of successful partnerships, global distribution capability and a diverse product mix. However, substantial intangible assets on the company's balance sheet and the tough operating backdrop are major concerns.
 
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

BlackRock, Inc.’s BLK fourth-quarter 2023 adjusted earnings of $9.66 per share handily surpassed the Zacks Consensus Estimate of $8.84. The figure reflects an increase of 8.2% from the year-ago quarter.

BLK’s quarterly results benefited from a rise in revenues and higher non-operating income. Further, AUM balance witnessed an improvement owing to net inflows. However, higher expenses acted as a dampener.

Invesco’s IVZ fourth-quarter 2023 adjusted earnings of 47 cents per share handily surpassed the Zacks Consensus Estimate of 38 cents. The bottom line grew 20.5% from the prior-year quarter.

Results benefited from an increase in AUM balance on decent inflows. However, a rise in operating expenses and lower revenues were the undermining factors.

Top 5 ChatGPT Stocks Revealed

Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.

Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”

Download Free ChatGPT Stock Report Right Now >>

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

Invesco Ltd. (IVZ) : Free Stock Analysis Report

Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report

To read this article on Zacks.com 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.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.