Affiliated Managers Group Earnings: Here’s Why the Stock is Up Now

Affiliated Managers Group Inc. (NYSE:AMG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.32%.

Affiliated Managers Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 31.33% to $2.18 in the quarter versus EPS of $1.66 in the year-earlier quarter.

Revenue: Rose 25.93% to $541 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Affiliated Managers Group Inc. reported adjusted EPS income of $2.18 per share. By that measure, the company beat the mean analyst estimate of $2.1. It beat the average revenue estimate of $526.83 million.

Quoting Management: “With record net client cash flows of $13 billion in the second quarter, and over $25 billion for the year to date, AMG has had an exceptional first half of 2013, despite a volatile global market environment,” stated Sean M. Healey, Chairman and Chief Executive Officer of AMG. “Our Economic earnings per share increased 31% over the second quarter of 2012, reflecting excellent execution across our business, including continued outstanding organic growth and strong investment performance by our Affiliates.”

Key Stats (on next page)…

Revenue increased 7.73% from $502.2 million in the previous quarter. EPS decreased 3.96% from $2.27 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.25 to a profit $2.2. For the current year, the average estimate has moved down from a profit of $9.38 to a profit of $9.33 over the last ninety days.

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

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