Affiliated Managers Group Earnings: Here’s Why Investors Like These Results

Affiliated Managers Group Inc. (NYSE:AMG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.17%.

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Affiliated Managers Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 43.67% to $2.27 in the quarter versus EPS of $1.58 in the year-earlier quarter.

Revenue: Rose 20.23% to $502.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Affiliated Managers Group Inc. reported adjusted EPS income of $2.27 per share. By that measure, the company beat the mean analyst estimate of $2.03. It missed the average revenue estimate of $519.71 million.

Quoting Management: “With strong year-over-year growth in our earnings and record net client cash flows of $12 billion in the first quarter, AMG has had an excellent start to 2013,” stated Sean M. Healey, Chairman and Chief Executive Officer of AMG. “Our Economic earnings per share increased 44% over the first quarter of 2012 – adjusting for the impact of the early realization of performance fees, the increase was 30% – reflecting continued strong organic growth and excellent execution across all areas of our business.”

Key Stats (on next page)…

Revenue increased 2.28% from $491 million in the previous quarter. EPS decreased 10.98% from $2.55 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $2.10 to a profit $2.16. For the current year, the average estimate has moved up from a profit of $9.14 to a profit of $9.36 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)