Investment Managers' Earnings Due on Jul 29: RJF, AMP & More
Investment managers (part of the broader Finance sector) have performed decently over the past several quarters, with some volatility. The trend is expected to have continued this time around too, with support from solid equity markets.
The performance of equity markets remained favorable as reflected by nearly 25% growth of the S&P 500 Index. The global economic slowdown, the Federal Reserve’s accommodative stance and a number of activities in the quarter continued to impact the economy and kept tickling trading counters, resulting in volatile market performance.
Therefore, asset managers have recorded an increase in assets under management (AUM) in the quarter under review. Further, the demand for alternative investment sources is expected to have aided revenue growth for investment managers.
However, rise in operating expenses, fueled by marketing and investments in technology, may impede bottom-line growth.
The investment managers, including The Blackstone Group BX and Legg Mason LM, which have reported second-quarter 2020 earnings so far, witnessed an increase in assets under management (AUM). However, revenues have not been of much support.
Per our Earnings Preview, overall earnings for the finance sector for the quarter are expected to decline 42.5% year over year. Notably, it recorded a fall of 32.6% in the prior quarter.
Let’s take a look at the investment management stocks that are slated to report on Jul 29.
T. Rowe Price Group TROW, scheduled to report second-quarter 2020 results before the opening bell, is likely to have witnessed net inflows and thus, its total AUM is expected to have recorded a rise. The Zacks Consensus Estimate for AUM is pegged at $1.2 billion, which indicates a 3.4% rise from the previous quarter.
It currently sports a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of 0.00%. (Read more: Will Solid Equity Markets Aid T. Rowe Price Q2 Earnings?)
T. Rowe has a decent earnings surprise history. The company surpassed the Zacks Consensus Estimate in each of the trailing four quarters.
T. Rowe Price Group, Inc. Price and EPS Surprise
Ameriprise Financial AMP is scheduled to report second-quarter 2020 results after market close. Based on expectations of improved advisor productivity, the Advice & Wealth Management segment is likely to have recorded growth in assets. The Zacks Consensus Estimate for management and financial advice fees (constituting more than 55% of the company’s total net revenues) is pegged at $1.90 billion, which suggests a rise of 7.1% from the prior quarter’s reported number.
Operating expenses are expected to have increased in the to-be-reported quarter due to advertising campaign and technology upgrades.
It has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. (Read more: What's in the Cards for Ameriprise in Q2 Earnings?)
The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in three of the trailing four quarters, as shown in the chart below:
Ameriprise Financial, Inc. Price and EPS Surprise
Raymond James RJF is slated to announce third-quarter fiscal 2020 (ended Jun 30) results, after market close. Higher trading income, solid underwriting fees and muted growth in advisory fees are expected to have supported the company’s quarterly performance. (Read more: Factors Setting the Tone for Raymond James Q3 Earnings)
Further, chances of Raymond James beating the Zacks Consensus Estimate are less this time as it has an Earnings ESP of 0.00% and Zacks Rank #3.
The company has a decent earnings surprise history. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters.
Raymond James Financial, Inc. Price and EPS Surprise
Janus Capital Group JHG is slated to announce second-quarter 2020 results before market open. The company is expected to have recorded a decline in revenues and earnings in the to-be-reported quarter.
The Zacks Consensus Estimate for earnings of 51 cents reflects a year-over-year fall of 16.4%. The consensus estimate for sales of $522.1 million suggests a decrease of 2.6%. It has a Zacks Rank #2 (Buy) and an Earnings ESP of 0.00%.
Janus Capital has a decent earnings surprise history. The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters.
Janus Capital Group, Inc Price and EPS Surprise
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Legg Mason, Inc. (LM): Free Stock Analysis Report
Blackstone Group IncThe (BX): Free Stock Analysis Report
T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report
Ameriprise Financial, Inc. (AMP): Free Stock Analysis Report
Raymond James Financial, Inc. (RJF): Free Stock Analysis Report
Janus Capital Group, Inc (JHG): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.