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Invesco (IVZ) Q1 Earnings & Revenues Miss Expectation

Have you been eager to see how Invesco Ltd. IVZ performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this GA-based asset manager’s earnings release this morning:

An Earnings Miss

Invesco came out with adjusted earnings of 49 cents per share, which lagged the Zacks Consensus Estimate of 54 cents.
 
Lower revenue was mainly responsible for the earnings miss.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Invesco depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved 4% lower over the last 30 days.

However, Invesco has a decent earnings surprise history. Before posting the earnings miss in Q1, the company delivered positive surprises in two of the prior four quarters, with an average beat of 0.02%.

Revenue Came In Lower Than Expected   

Invesco posted GAAP revenues of $1.15 billion, which missed the Zacks Consensus Estimate of $1.19 billion. Also, it compared unfavorably with the year-ago number of $1.29 billion.

Key Statistics:

  • Adjusted operating margin was 37.5%
  • Assets under management (AUM) of $771.5 billion
  • Long-term net outflows were $1.3 billion
  • Long-term debt stood at $2,073.2 million
  • Raised quarterly dividend by 3.7% to 28 cents per share


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Invesco. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.

Check back later for our full write up on this Invesco earnings report!

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