Invesco Ltd. Earnings Cheat Sheet: Five Straight Quarters of Double-Digit Growth

S&P 500 (NYSE:SPY) component Invesco Ltd. (NYSE:IVZ) reported its results for the third 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for the asset management company rose to $166.9 million (36 cents per share) vs. $154.7 million (32 cents per share) in the same quarter a year earlier. This marks a rise of 7.9% from the year earlier quarter.

Revenue: Rose 12.3% to $1.07 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: IVZ reported adjusted net income of 42 cents per share. By that measure, the company beat the mean estimate of 41 cents per share. Analysts were expecting revenue of $1.06 billion.

Quoting Management: “In spite of volatile markets across the globe, Invesco generated strong, long-term investment performance for our clients, which contributed to continued positive net inflows and solid operating results for the quarter,” said Martin L. Flanagan, president and chief executive officer. “Reflecting confidence in the fundamentals of our business, we expect to purchase $100 million of Invesco shares during the fourth quarter.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 32.7%, with the biggest boost coming in the first quarter when revenue rose 42.9% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose more than fourfold and in the first quarter, the figure rose 86.8%.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 44 cents versus a mean estimate of net income of 43 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 40 cents per share, down from 49 cents ninety days ago. At $1.66 per share, the average estimate for the fiscal year has fallen from $1.79 ninety days ago.

Competitors to Watch: BlackRock, Inc. (NYSE:BLK), Affiliated Managers Group, Inc. (NYSE:AMG), Eaton Vance Corp. (NYSE:EV), AllianceBernstein Holding LP (NYSE:AB), Gamco Investors Inc. (NYSE:GBL), Cohen & Steers, Inc. (NYSE:CNS), The Blackstone Group L.P. (NYSE:BX), Morgan Stanley (NYSE:MS), Fortress Investment Group LLC (NYSE:FIG), and T. Rowe Price Group, Inc. (NASDAQ:TROW).

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(Source: Xignite Financials)

 

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