AllianceBernstein Holding LP (AB) Announces Q3 2023 Results
AB reports GAAP diluted net income of $0.50 per unit and adjusted diluted net income of $0.65 per unit.
Net revenues increased by 4.6% to $1,032,056 from Q3 2022.
Operating income rose by 2.9% to $175,250 from Q3 2022.
Assets Under Management (AUM) increased by 9.2% to $669.0 billion from Q3 2022.
On October 26, 2023, AllianceBernstein Holding LP (NYSE:AB) released its financial and operating results for the quarter ended September 30, 2023. The company reported GAAP diluted net income of $0.50 per unit and adjusted diluted net income of $0.65 per unit. The company also announced a cash distribution of $0.65 per unit.
Financial Highlights
AB's net revenues for Q3 2023 were $1,032,056, marking a 4.6% increase from Q3 2022. The operating income for the same period was $175,250, a 2.9% increase from Q3 2022. However, the operating margin decreased by 110 basis points to 17.2% from 18.3% in Q3 2022. The company's diluted earnings per unit (EPU) was $0.50, a decrease of 10.7% from Q3 2022.
On an adjusted basis, AB's net revenues for Q3 2023 were $845,792, a 3.9% increase from Q3 2022. The adjusted operating income for the same period was $236,854, a 13.0% increase from Q3 2022. The adjusted operating margin increased by 220 basis points to 28.0% from 25.8% in Q3 2022. The company's adjusted diluted EPU was $0.65, a 1.6% increase from Q3 2022.
Assets Under Management (AUM)
AB's AUM as of September 30, 2023, were $669.0 billion, a 9.2% increase from Q3 2022. However, the company saw modest net outflows of $1.9 billion, with active net flows nearly flat. The retail sector gained market share, with organic growth driven by taxable fixed income and municipals. The company's municipal SMA business reached $20 billion in AUM, more than doubling organically over the last five years.
Performance and Outlook
AB's President and CEO, Seth P. Bernstein, stated that the company delivered organic growth in several key services, despite markets and flows reflecting investor risk aversion as yields moved higher throughout the quarter. He added that investment performance remained strong in fixed income, with modest improvement in equities. Bernstein also noted that the firms cash distribution per Unit of $0.65 is payable on November 22, 2023, to holders of record of AB Holding Units at the close of business on November 6, 2023.
Looking ahead, Bernstein expressed a constructive view, believing that cash assets will eventually be re-allocated into riskier assets, supporting higher investment returns over time. He also stated that the company's global investment teams are mindful of heightened volatility and continue to actively manage clients' assets through ever-changing conditions.
Explore the complete 8-K earnings release (here) from AllianceBernstein Holding LP for further details.
This article first appeared on GuruFocus.
