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What's in Store for Affiliated Managers (AMG) in Q3 Earnings?

Affiliated Managers Group Inc. AMG is slated to report third-quarter 2022 results on Nov 7, before the opening bell. Its earnings and revenues are expected to have declined from the year-ago reported figure.

In the last reported quarter, the company’s earnings outpaced the Zacks Consensus Estimate. Results benefited from an improvement in revenues, partly offset by higher expenses and a decline in the assets under management (AUM) balance.

The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in each of the trailing four quarters, the average beat being 3.79%.


Affiliated Managers Group, Inc. Price and EPS Surprise

Affiliated Managers Group, Inc. price-eps-surprise | Affiliated Managers Group, Inc. Quote

Earnings & Revenue Projections for Q3

The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.92, which has been revised 2.9% lower over the past 30 days. The figure indicates a 2% decline from the year-ago quarter’s reported figure. Our estimate for economic earnings per share is $3.96.

The consensus estimate for sales is pegged at $553.3 million, indicating 3.8% year-over-year fall. Our estimate for total revenues is $564.8 million.

Management Expectations for Q3

Adjusted EBITDA is expected to be $210 million. The guidance also includes growth in performance fees to be similar to the second-quarter 2022 level. Our estimate for adjusted EBITDA is $205.3 million.

Interest expenses are estimated to be $27 million, suggesting no change from the prior quarter’s reported number. We expect interest expenses to be $26 million.

Controlling interest depreciation is also expected to remain at the second-quarter 2022 level of $2 million.

The company’s share of reported amortization and impairments is expected to be $40 million, down from $43.1 million in the prior quarter. Our estimate for the metric is $38.6 million.

Intangible-related deferred taxes are projected to be $13 million, similar to the second quarter level. Our estimate for the metric is $12.8 million.

Other economic items (excluding any mark-to-market impact) are anticipated to be nil.

Earnings Whispers

According to our quantitative model, the chances of Affiliated Managers beating the Zacks Consensus Estimate this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or higher.

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

Earnings ESP: The Earnings ESP for Affiliated Managers is +0.12%.

Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are a few other finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

The Earnings ESP for FS KKR Capital Corp. FSK is +2.07% and it carries a Zacks Rank #2 (Buy) at present. The company is slated to report third-quarter 2022 results on Nov 7.

Over the past 30 days, the Zacks Consensus Estimate for FS KKR Capital’s quarterly earnings has been revised 1.4% north.

New Mountain Finance Corporation NMFC is scheduled to release third-quarter 2022 earnings on Nov 8. NMFC, which carries a Zacks Rank #3 at present, has an Earnings ESP of +3.23%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NMFC’s quarterly earnings estimates have remained unchanged over the past month.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Affiliated Managers Group, Inc. (AMG) : Free Stock Analysis Report
New Mountain Finance Corporation (NMFC) : Free Stock Analysis Report
FS KKR Capital Corp. (FSK) : Free Stock Analysis Report
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