Affiliated Managers (AMG) to Post Q4 Earnings: What's in Store?
Affiliated Managers Group Inc. AMG is slated to report fourth-quarter and full-year 2023 results on Feb 5, before the opening bell. Its quarterly earnings and revenues are expected to have declined in the quarter on a year-over-year basis.
In the last reported quarter, the company’s earnings outpaced the Zacks Consensus Estimate. Results benefited from lower expenses, partly offset by a decline in the assets under management (AUM) balance and revenues.
The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average beat being 4.36%.
Affiliated Managers Group, Inc. Price and EPS Surprise
Affiliated Managers Group, Inc. price-eps-surprise | Affiliated Managers Group, Inc. Quote
The Zacks Consensus Estimate for AMG’s fourth-quarter earnings is pegged at $5.92, which has moved 5% north over the past month. The figure indicates an 18.7% decline from the year-ago quarter’s reported number. Our estimate for economic earnings per share stands at $5.54.
The company expects economic net income (controlling interest) of $191-$210 million. Economic earnings per share is predicted to be between $5.43 and $5.96.
The consensus estimate for sales is pegged at $532 million, indicating a 1.4% year-over-year fall. Our estimate for total revenues is pegged at $532.6 million.
Other Key Expectations for Q4
Management expects adjusted EBITDA to be in the $260-$285 million range based on the current AUM levels, net performance fee earnings of up to $75-$100 million and the partial quarter contribution from Forbion. Our estimate for adjusted EBITDA is $265.9 million.
Interest expenses are expected to be $31 million. We expect interest expenses of $31.6 million.
Controlling interest depreciation is likely to be $2 million.
Net income (controlling interest) is expected to be between $145 million and $163 million. We anticipate the metric to be $148.1 million.
The company’s share of reported amortization and impairments is estimated to be $30 million. Our estimate for the metric is $30.1 million.
Intangible-related deferred taxes are projected to be $15 million. Our estimate for the metric is the same as the company guidance.
Other economic items, which now include realized gains, are anticipated to be roughly $2 million.
Earnings Whispers
Our quantitative model doesn’t conclusively predict an earnings beat for Affiliated Managers this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Affiliated Managers is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are a couple of asset managers that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
The Earnings ESP for SEI Investments Company SEIC is +0.64% and carries a Zacks Rank #1 (Strong Buy) at present. The company is scheduled to report fourth-quarter and full-year 2023 results on Jan 31.
Over the past 30 days, the Zacks Consensus Estimate for SEIC’s quarterly earnings has moved 3.4% north to 91 cents per share.
T. Rowe Price Group, Inc. TROW is scheduled to release quarterly numbers on Feb 8. The company has an Earnings ESP of +1.33% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
TROW’s quarterly earnings estimates have been revised upward by 7.4% to $1.60 over the past month.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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T. Rowe Price Group, Inc. (TROW) : Free Stock Analysis Report
Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report
SEI Investments Company (SEIC) : Free Stock Analysis Report
