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Affiliated Managers (AMG) Q1 Earnings Beat Estimates, AUM Up

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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.

Our Take

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 and EPS Surprise
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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