Artisan Partners Asset Management Inc. APAM reported third-quarter 2024 adjusted net income per share of 92 cents, beating the Zacks Consensus Estimate of 91 cents. The bottom line increased 22.7% from the prior-year quarter.

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

Results benefitted from Global Funds and Separate account growth. An increased asset under management (AUM) balance resulted in top-line growth. The balance sheet position also improved in the reported quarter. However, rising operating expenses acted as headwinds.

Results in the reported quarter excluded certain notable items. After considering these, net income available to common shareholders (GAAP basis) was $72.9 million or $1.03 per share, up from $53.1 million or 76 cents per share in the prior-year quarter.

APAM Revenues & Expenses Rise Y/Y

Third-quarter revenues were $279.6 million, which rose 12.4% year over year.

Management fees earned from Artisan Funds & Artisan Global Funds increased 11.7% year over year to $174.7 million. Management fees earned from Separate accounts grew 13.8% to $104.9 million.
 
Total operating expenses were $186.4 million, up 11.9% year over year.

Operating income was $93.2 million, up 13.4% year over year.

APAM’s AUM Balance Increases Sequentially

As of Sept. 30, 2024, the ending AUM was $167.8 billion, up 5.6% from the previous quarter driven by $9.9 billion of market appreciation, partially offset by $0.8 billion of net client cash outflows and $0.2 billion of Artisan Funds' distributions which was not reinvested.

The average AUM totaled $162.8 billion, up 2.7% from the prior quarter.

APAM’s Balance Sheet Position Improves Sequentially

Cash and cash equivalents were $253.9 million compared with $195.4 million as of June 30, 2024. Artisan Partners’ debt leverage ratio, calculated in accordance with its loan agreements, was 0.5X as of Sept. 30, 2024.

APAM’s Dividend Update

The company’s board of directors declared a variable third-quarter dividend of 82 cents per share of Class A common stock. The amount will be paid out on Nov. 29 to shareholders of record as of Nov. 15, 2024.

Our Take on APAM

A decent liquidity position is expected to support financials. Also, diverse investment strategies across multiple asset classes and investments in new teams and operational capabilities will likely drive revenues in the upcoming period. However, challenging operating backdrop and geopolitical concerns might affect the company’s AUM in the forthcoming period. A volatile trend in net outflows over the past years keeps us apprehensive.

Artisan Partners Asset Management Inc. Price, Consensus and EPS Surprise

Artisan Partners Asset Management Inc. price-consensus-eps-surprise-chart | Artisan Partners Asset Management Inc. Quote

Currently, Artisan Partners flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performances of Other Asset Managers

BlackRock’s BLK third-quarter 2024 adjusted earnings of $11.46 per share handily surpassed the Zacks Consensus Estimate of $10.34. The figure reflects growth of 5% from the year-ago quarter.

BLK’s results benefited from a rise in revenues and higher non-operating income. AUM witnessed robust growth and touched the $11.45-trillion mark, driven by net inflows and market appreciation. However, higher expenses acted as a headwind.

Blackstone’s BX third-quarter 2024 distributable earnings of $1.01 per share outpaced the Zacks Consensus Estimate of 91 cents. The figure reflects a rise of 7% from the prior-year quarter.

BX’s results benefited from higher revenues and an improved AUM balance. However, an increase in GAAP expenses acted as a headwind.

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

Blackstone Inc. (BX) : Free Stock Analysis Report

BlackRock, Inc. (BLK) : Free Stock Analysis Report

Artisan Partners Asset Management Inc. (APAM) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research