Invesco Ltd. Earnings: Profit Increases Again

S&P 500 (NYSE:SPY) component Invesco Ltd. (NYSE:IVZ) reported net income above Wall Street’s expectations for the fourth 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 Fourth Quarter

Results: Net income for Invesco Ltd. rose to $202.3 million (44 cents per share) vs. $175.2 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 15.5% from the year earlier quarter.

Revenue: Fell 3.1% to $997.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: IVZ beat the mean analyst estimate of 41 cents per share. Analysts were expecting revenue of $980.7 million.

Quoting Management: “Invesco’s efforts to provide strong, long-term investment performance to our clients contributed to the third year of long-term organic growth for the firm in spite of volatile markets, particularly during the final quarter of 2011,” said Martin L. Flanagan, president and CEO of Invesco. “Strong investment performance led to positive net flows of $24.5 billion for the year and contributed to a 21.7% increase in adjusted earnings per share. Our efforts to enhance our business over the past year have positioned us to provide solid results in volatile markets and even stronger results should the markets further strengthen in 2012.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 7.9% and in the second quarter, the figure rose more than fourfold.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the first quarter, which saw revenue rise 42.9%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in the third quarter and by one cent in the second quarter.

Looking Forward: Analysts are pessimistic about the company’s results for the next quarter. The average estimate has fallen for the first quarter of the next fiscal year to 41 cents per share, down from 42 cents seven days ago. For the fiscal year, the average estimate has moved up from $1.66 a share to $1.67 over the last ninety days.

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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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com