AllianceBernstein Holding L.P. Earnings: Here’s Why the Stock is Down Now

AllianceBernstein Holding L.P. (NYSE:AB) 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 down 0.63%.

AllianceBernstein Holding L.P. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 70.83% to $0.41 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Was the same at $734 million as the year-earlier quarter.

Actual vs. Wall St. Expectations: AllianceBernstein Holding L.P. reported adjusted EPS income of $0.41 per share. By that measure, the company beat the mean analyst estimate of $0.38. It beat the average revenue estimate of $723.13 million.

Quoting Management: “The second quarter finished very differently than it began,” said Peter S. Kraus, Chairman and Chief Executive Officer. “The robust equity markets and strong demand for fixed income we experienced early in the quarter gave way to equity market volatility and high investor anxiety over the outlook for interest rates – particularly following the late-May release of US Fed meeting minutes suggesting a potential easing of bond buybacks. As a result, mortgage rates rose quickly, bond flows turned negative and equity flows declined, as investors took to the sidelines. Despite a difficult June, we maintained momentum in our Institutions channel, where gross sales were up for a third straight quarter, to a 12-quarter high. However, flows to our Retail channel – particularly in Asia ex-Japan fixed income – were dramatically affected, and we experienced net outflows for the first time in six quarters.”

Key Stats (on next page)…

EPS increased 7.89% from $0.38 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 $0.41 to a profit $0.39. For the current year, the average estimate has moved down from a profit of $1.57 to a profit of $1.55 over the last ninety days.

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