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Affiliated Managers Group Inc.’s AMG first-quarter 2021 economic earnings of $4.28 per share surpassed the Zacks Consensus Estimate of $4.26. Also, the bottom line grew 34.5% year over year.
Results reflect improvement in revenues and growth in assets under management (AUM) balance. Further, the company had a robust liquidity position. However, higher operating expenses posed a headwind.
Economic net income was $184.8 million, up 22.1% from the prior-year quarter.
Revenues & AUM Rise, Expenses Up
Total revenues improved 10.2% year over year to $559.1 million. Further, the top line beat the Zacks Consensus Estimate of $554.6 million.
Adjusted EBITDA was $246.8 million, jumping 23.2% from the year-ago quarter.
Total expenses increased 6.8% to $378.5 million. Higher compensation and related expenses, and interest expenses mainly led to the rise.
As of Mar 31, 2021, total AUM was $738 billion, up 23.2% year over year. Net client cash outflows of $7.5 billion during the quarter hurt AUM.
Capital & Liquidity Position Decent
As of Mar 31, 2021, Affiliated Managers had $766.2 billion in cash and cash equivalents compared with $1.04 billion on Dec 31, 2020. The company had $2.30 billion of debt, which declined marginally from Dec 31, 2020 level.
Shareholders’ equity as of Mar 31, 2021 was $2.7 billion compared with $2.8 billion as of Dec 31, 2020.
Share Repurchase Update
During the first quarter, the company repurchased shares worth nearly $210 million.
Affiliated Managers is well positioned for growth on the back of successful partnerships and global distribution capability, along with a diverse product mix. However, muted revenue growth and decline in AUM balance remain major concerns.
Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise
Affiliated Managers Group, Inc. price-consensus-eps-surprise-chart | Affiliated Managers Group, Inc. Quote
Affiliated Managers currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
BlackRock, Inc.’s BLK first-quarter 2021 adjusted earnings of $7.77 per share outpaced the Zacks Consensus Estimate of $7.64. The figure reflects a rise of 17.7% from the year-ago quarter’s number.
Blackstone’s BX first quarter 2021 distributable earnings of 96 cents per share surpassed the Zacks Consensus Estimate of 72 cents. Moreover, the figure represents a significant rise from 46 cents recorded in the prior-year quarter.
SEI Investments Co.’s SEIC earnings of 89 cents per share in the first quarter 2021 missed the Zacks Consensus Estimate by a penny. However, the bottom line reflected 24% growth from the prior-year quarter.
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