Affiliate Managers Group Inc.it is (AMG – Free Report) fourth-quarter 2021 economic earnings of $6.10 per share significantly beat Zacks’ consensus estimate of $5.81. Net income jumped 44.5% year-over-year.
Results were helped by improved revenue and growth in assets under management (AUM), partially offset by higher expenses. In addition, the company had a solid liquidity position.
Economic net profit was $255.3 million, up 33.4% from the prior year quarter.
In 2021, economic earnings per share of $18.28 exceeded the consensus estimate of $18.11 and increased 36.8% year over year. Economic net income was $779.8 million, up 24.9% from 2020.
Revenue and AUM improve, expenses increase
Total revenue for the reported quarter climbed 24.8% year over year to $691.8 million. Additionally, the top line beat Zacks’ consensus estimate of $658.67 million.
In 2021, total revenue increased 19% to $2.41 billion. Revenue also exceeded the consensus estimate of $2.38 billion.
Adjusted EBITDA was $356.8 million, up 39.8% from the prior year quarter.
Total expenditures increased 20.9% year over year to $467.7 million. An increase in all cost components except depreciation and other amortization costs drove the increase.
As of December 31, 2021, total assets under management were $813.8 billion, up 13.6% year-over-year. Net outflow from customers during the quarter was $6.2 billion.
Decent capital and liquidity position
As of December 31, 2021, affiliate managers had $908.5 million in cash and cash equivalents, compared to $1.04 billion as of December 31, 2020. The company had debt of $2.49 billion, which has increased by 7.7% compared to the level of December 31, 2020.
Equity as of December 31, 2021 was $2.79 billion, compared to $2.78 billion as of December 31, 2020.
Share buyback update
During the quarter under review, the company repurchased shares worth $120 million.
The company increased the share buyback authorization to a total of 5.1 million shares.
Our point of view
Affiliated Managers remains well positioned for growth through successful partnerships and global distribution capability as well as a diverse product line. However, the presence of significant intangible assets on the company’s balance sheet remains a concern.
Affiliate Managers currently carry a Zacks Rank #4 (Sell).
You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of other asset managers
BlackRock, Inc.it is (NOIR – Free Report) fourth-quarter 2021 adjusted earnings of $10.42 per share beat Zacks’ consensus estimate of $10.23. This figure reflects a 2.4% increase over the prior year quarter.
BLK’s results benefited from improved revenues, partially offset by higher expenses. In addition, long-term net inflows supported growth in the balance of assets under management.
Invescoit is (IVZ – Free Report) fourth-quarter 2021 adjusted earnings of 86 cents per share significantly beat Zacks’ consensus estimate of 76 cents. Net income increased by 19.4% over the prior year quarter.
IVZ’s results reflect improved revenues and solid growth in the balance of assets under management. However, a rise in operating expenses was a headwind.
Ameriprise Financialit is (GPA – Free Report) for the fourth quarter of 2021, adjusted operating earnings per share of $6.15 beat Zacks’ consensus estimate of $5.77. Net income reflects a 35.8% increase over the prior year quarter.
AMP’s results were supported by revenue growth, partially offset by higher expenses. Improvements in assets under management and the balance of assets under administration were favourable.