Invesco Earnings: Here’s Why the Stock is Down Now
Invesco Ltd. (NYSE:IVZ) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.09%.
Invesco Ltd. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 21.95% to $0.50 in the quarter versus EPS of $0.41 in the year-earlier quarter.
Revenue: Rose 12.54% to $1.14 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Invesco Ltd. reported adjusted EPS income of $0.50 per share. By that measure, the company missed the mean analyst estimate of $0.51. It beat the average revenue estimate of $1.11 billion.
Quoting Management: “Invesco’s focus on delivering strong, long-term investment performance to our clients contributed to a 26.9% increase in operating income in the second quarter compared to the same period last year,” said Martin L. Flanagan, president and CEO of Invesco. “Strong investment performance and a continued focus on meeting client needs drove positive long-term net flows during the quarter and helped the firm strengthen its operating margin to 39.3% from 35.7% a year ago.”
Key Stats (on next page)…
EPS decreased 3.85% from $0.52 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 $0.54 to a profit $0.53. For the current year, the average estimate has moved down from a profit of $2.14 to a profit of $2.11 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)