Affiliated Managers Group Inc.’s AMG third-quarter 2024 economic earnings of $4.82 per share were in line with the Zacks Consensus Estimate. The bottom line also grew 18.1% from the prior-year number.

Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.

An improvement in the assets under management (AUM) balance was a positive. Further, the company had a robust liquidity position. However, lower revenues and a rise in expenses were the undermining factors.

Economic net income was $153.2 million, up 2.5% year over year. Our estimate for this metric was $150.2 million.

AMG’s Revenues Fall, Expenses Rise

Quarterly total revenues declined 1.7% year over year to $516.4 million. Also, the top line missed the Zacks Consensus Estimate of $521.4 million.

Adjusted EBITDA was $214.1 million, up 2.7%. We projected the metric to be $212.9 million.

Total consolidated expenses rose 4.8% to $374.7 million. We had projected total expenses of $360.4 million.

Affiliated Managers’ AUM Rises

As of Sept. 30, 2024, the total AUM was $728.4 billion, which grew 14.6%. Our estimate for total AUM was $699.5 million.

Net client cash outflows were $2.9 billion in the reported quarter.

AMG’s Capital & Liquidity Position Decent

As of Sept. 30, 2024, Affiliated Managers had $1.01 billion in cash and cash equivalents compared with $813.6 million as of Dec. 31, 2023. The company had $2.62 billion of debt, down from $2.54 billion as of Dec. 31, 2023.

Stockholders’ equity as of Sept. 30, 2024, was $3.32 billion, down from $3.59 million as of Dec. 31, 2023.

Update on AMG’s Share Repurchases

During the third quarter, Affiliated Managers repurchased shares worth $103 million.

Our View on Affiliated Managers

Affiliated Managers is well-positioned for growth given the successful partnerships, global distribution capability and a diverse product mix. However, substantial intangible assets on the company's balance sheet and the tough operating backdrop are major concerns.
 

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

Performance of AMG’s Peers

T. Rowe Price Group, Inc. TROW reported third-quarter 2024 adjusted earnings per share of $2.57, which beat the Zacks Consensus Estimate of $2.36. Also, the bottom line increased 18.4% year over year.

TROW's net revenues were supported by a rise in AUM. Further, appreciation in cash and cash equivalents will help the company to continue investing. However, a rise in expenses was a woe.

Invesco’s IVZ third-quarter 2024 adjusted earnings of 44 cents per share came in line with the Zacks Consensus Estimate. The bottom line increased 25.7% from the prior-year quarter.

IVZ’s results primarily benefited from a decline in adjusted expenses and higher adjusted net revenues. An increase in the AUM balance on decent inflows was also a positive.

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