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A Preview Of Affiliated Managers Group's Earnings

Benzinga Insights
·2 min read

Affiliated Managers Group (NYSE: AMG) announces its next round of earnings this Monday, October 26. Here is Benzinga's everything-that-matters guide for this Monday's Q3 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Based on Affiliated Managers Group management projections, analysts predict EPS of $2.84 on revenue of $467.97 million. Affiliated Managers Group earnings in the same period a year ago was $3.16 per share. Quarterly sales came in at $549.00 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

View more earnings on AMG

The Wall Street consensus estimate for earnings would represent a 10.13% decrease for the company. Revenue would be down 14.76% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter

Q2 2020

Q1 2020

Q4 2020

Q3 2019

EPS Estimate

2.73

3.08

4.08

3.13

EPS Actual

2.74

3.16

4.52

3.16

Revenue Estimate

445.67 M

496.34 M

553.50 M

547.57 M

Revenue Actual

471.10 M

507.30 M

555.50 M

549.00 M

Stock Performance

Shares of Affiliated Managers Group were trading at $78.98 as of October 22. Over the last 52-week period, shares are down 2.18%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Affiliated Managers Group is scheduled to hold the call at 08:30:00 ET and can be accessed here.

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