Invesco Earnings: Four Quarters of Rising Profit Now Broken

S&P 500 (NYSE:SPY) component Invesco Ltd. (NYSE:IVZ) reported its results for the second quarter. Invesco is a global investment management company providing retail, institutional and high-net-worth clients around the world with innovative solutions.

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Invesco Ltd. Earnings Cheat Sheet

Results: Net income for Invesco Ltd. fell to $153.9 million (34 cents per share) vs. $183 million (39 cents per share) a year earlier. This is a decline of 15.9% from the year-earlier quarter.

Revenue: Fell 5.7% to $1.01 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Invesco Ltd. fell short of the mean analyst estimate of 43 cents per share. It fell short of the average revenue estimate of $1.05 billion.

Quoting Management: “Investment performance was strong across all time periods, with 73%, 73% and 77% of assets ahead of peers over one, three and five years, reflecting our commitment to delivering investment excellence to our clients,” said Martin L. Flanagan, president and CEO. “Enabled by our efforts to strengthen our business over the past few years, we are confident of future organic growth in spite of a challenging quarter and a volatile market environment.”

Key Stats:

Last quarter’s profit decrease ends a four-quarter streak of profit increases. In the first quarter, net income rose 9.2% from the year earlier, while the figure increased 15.5% in the fourth quarter of the last fiscal year, 7.9% in the third quarter of the last fiscal year and more than fourfold in the second quarter of the last fiscal year.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 44 cents.

Revenue fell last quarter after increasing in the previous quarter. Revenue rose 0.6% to $1.03 billion in the first quarter from the year earlier.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 50 cents a share to 45 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $1.94 a share to $1.82 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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