A month has gone by since the last earnings report for Artisan Partners Asset Management (APAM). Shares have lost about 6.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Artisan Partners due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Artisan Partners Q4 Earnings & Revenues Rise Y/Y, AUM Balance Declines

Artisan Partners reported fourth-quarter 2024 adjusted net income per share of $1.05. The bottom line increased 34.6% from the prior-year quarter.

Results benefitted from Global Funds and Separate account growth. The balance sheet position also improved in the reported quarter. However, rising operating expenses acted as headwinds. A sequential decline in the AUM balance was a spoilsport. 

Results in the reported quarter excluded certain notable items. After considering these, net income available to common shareholders (GAAP basis) was $69.7 million or 97 cents per share, up from $64.8 million or 92 cents per share in the prior-year quarter.

For 2024, the company reported adjusted net income per share of $3.55. The metric increased 22.8% from the prior year. Net income was $259.7 million, up from $222.3 million in the prior year.

APAM Revenues & Expenses Rise Y/Y

Fourth-quarter revenues were $297 million, which rose 19.3% year over year.

For the year, revenues were $1.11 billion, up 14% year over year.

Management fees earned from Artisan Funds & Artisan Global Funds increased 16.1% year over year to $178.4 million. Management fees earned from Separate accounts grew 13.9% to $103.9 million.

Total operating expenses were $187.9 million, up 8.9% year over year.

Operating income was $109.1 million, up 42.8% year over year.

APAM’s Ending AUM Balance Declines Sequentially

As of Dec. 31, 2024, the ending AUM was $161.2 billion, down 3.9% from the previous quarter due to $5 billion of market depreciation, $0.8 billion of net client cash outflows and $0.2 billion of Artisan Funds' distributions, which were not reinvested.

The average AUM totaled $165.4 billion, up 1.6% from the prior quarter.

APAM’s Balance Sheet Position Improves Sequentially

Cash and cash equivalents were $201.2 million as of Dec. 31, 2024 compared with $253.9 million as of Sept. 30, 2024. Artisan Partners’ debt leverage ratio, calculated in accordance with its loan agreements, was 0.5X as of Dec. 31, 2024.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

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This article originally published on Zacks Investment Research (zacks.com).

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