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Investment Managers' Earnings on Oct 23: IVZ, RJF, BX & More

Swayta Shah

Over the last several quarters, performance of investment managers (part of the broader Finance sector) remained volatile amid a tough operating backdrop. A similar trend might have persisted in the September quarter as well.

Equity markets performance in the July-September quarter was decent. However, several global and domestic concerns, including uncertainty related to U.S.-China trade war and Brexit, fears of global economic slowdown, the Fed’s accommodative policy stance and other geopolitical matters weighed on investors’ sentiments.

Therefore, asset managers are likely to have recorded modest improvement in assets under management (AUM), driven by more focus on passive investment strategies. Nonetheless, strengthening of the U.S. dollar might have had an adverse impact on the global diversified AUM mix during the quarter.

Also, rise in operating expenses, fueled by marketing and investments in technology, might have impeded bottom-line growth.

Some investment managers, including BlackRock, Inc. BLK, have already come out with results. The company witnessed year-over-year decline in earnings owing to higher costs.

Per our Earnings Preview, overall earnings for the finance sector for the quarter are expected to be up 5% year over year. This compares favorably with the prior-quarter growth of 4.3%.

Let’s take a look at the investment management stocks that are slated to report on Oct 23.

Invesco IVZ is scheduled to report third-quarter 2019 results, before the opening bell. Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Invesco has a Zacks Rank #3 and Earnings ESP of -0.15%.

(You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.)

Invesco’s total AUM might have declined in the to-be-reported quarter, majorly due to net outflows. The Zacks Consensus Estimate for average AUM of $1,200 billion indicates a rise of 13.6% from the prior-quarter reported figure. So, performance fees and investment management fees are likely to have recorded soft growth in the third quarter. (Read more: What's in the Cards for Invesco This Earnings Season?)

Notably, Invesco has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, as shown in the chart below:

Invesco Ltd. Price and EPS Surprise

 

Invesco Ltd. Price and EPS Surprise

Invesco Ltd. price-eps-surprise | Invesco Ltd. Quote

Raymond James RJF is slated to announce fourth-quarter and fiscal 2019 results, after market close. Lower trading income, and muted growth in advisory and underwriting fees are likely to have hampered the company’s quarterly performance. (Read more: What's in Store for Raymond James in Q4 Earnings?)

Further, chances of Raymond James beating the Zacks Consensus Estimate are less this time as it has an Earnings ESP of 0.00% and Zacks Rank #4 (Sell).

Nonetheless, the company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in three of the trailing four quarters.

Raymond James Financial, Inc. Price and EPS Surprise

 

Raymond James Financial, Inc. Price and EPS Surprise

Raymond James Financial, Inc. price-eps-surprise | Raymond James Financial, Inc. Quote

Blackstone BX, scheduled to report third-quarter 2019 results before the opening bell, is likely to have witnessed net inflows and thus, fee-earning AUM and total AUM might have recorded a rise. The Zacks Consensus Estimate for fee-earning AUM is pegged at $413 billion, which indicates 20.8% rise from the year-ago reported figure.

Also, net management and advisory fees (segment revenues) are projected to be $878 million, indicating growth of 26.9%.

It has a Zacks Rank #3 and an Earnings ESP of +3.70%. (Read more: Is an Earnings Beat in Store for Blackstone in Q3?)

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Blackstone has a decent earnings surprise history. The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters.

Blackstone Group Inc/The Price and EPS Surprise

 

Blackstone Group Inc/The Price and EPS Surprise

Blackstone Group Inc/The price-eps-surprise | Blackstone Group Inc/The Quote

Ameriprise Financial AMP is scheduled to report third-quarter 2019 results after the market closes. Based on expectations of improved advisor productivity, the Advice & Wealth Management segment is likely to have recorded growth in assets. On cost front, operating expenses are expected to have increased in the to-be-reported quarter due to advertising campaign and technology upgrades.

It has a Zacks Rank #4 and an Earnings ESP of +2.52%. (Read more: Why is a Beat Less Likely for Ameriprise in Q3 Earnings?)

The company has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, as shown in the chart below:

Ameriprise Financial, Inc. Price and EPS Surprise

 

Ameriprise Financial, Inc. Price and EPS Surprise

Ameriprise Financial, Inc. price-eps-surprise | Ameriprise Financial, Inc. Quote

SEI Investments Company SEIC is slated to announce third-quarter 2019 results after market close. The company is expected to have to recorded an increase in revenues and earnings in the to-be-reported quarter.

The Zacks Consensus Estimate for earnings of 83 cents reflects a year-over-year rise of 3.8%. The consensus estimate for sales of $416 million suggests an increase of 1.8%. It has a Zacks Rank #3 and an Earnings ESP of +0.80%.

SEI Investments has a decent earnings surprise history. The company surpassed the Zacks Consensus Estimate in two of the trailing four quarters.

SEI Investments Company Price and EPS Surprise

 

SEI Investments Company Price and EPS Surprise

SEI Investments Company price-eps-surprise | SEI Investments Company Quote

Check back later for our full write-up on earnings releases of these stocks.

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Raymond James Financial, Inc. (RJF) : Free Stock Analysis Report
 
Blackstone Group Inc/The (BX) : Free Stock Analysis Report
 
Invesco Ltd. (IVZ) : Free Stock Analysis Report
 
SEI Investments Company (SEIC) : Free Stock Analysis Report
 
Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
 
BlackRock, Inc. (BLK) : Free Stock Analysis Report
 
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