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Invesco Q2 adjusted EPS beats analyst estimates on record inflows

Invesco Q2 adjusted EPS beats analyst estimates on record inflows


Overview

  • Asset manager's Q2 adjusted EPS beat analyst expectations, driven by higher average AUM

  • Q2 net long-term inflows reached record $45.1 bln, boosting ending AUM 14% sequentially

  • Company repurchased $50 mln of shares and declared $0.215/share quarterly dividend


Outlook

  • Company did not provide specific guidance for the current quarter or full year


Result Drivers

  • RECORD INFLOWS - Net long-term inflows of $45.1 bln, mainly from ETFs, Index, QQQ, China JV and Private Markets, drove AUM growth

  • HIGHER AVERAGE AUM - Increased average AUM boosted investment management fees and net revenues

  • CANADIAN BUSINESS SALE - Net benefit from sale and restructuring of Canadian fund business reduced general and administrative expenses


Company press release: ID:nPn2njFGPa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Operating Revenue

$1.83 bln

Q2 Adjusted EPS

Beat

$0.71

$0.66 (9 Analysts)

Q2 EPS

$0.76

Q2 Dividend

$0.22


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the investment management & fund operators peer group is "buy."

  • Wall Street's median 12-month price target for Invesco Ltd is $31.50, about 4.6% above its July 27 closing price of $30.11

  • The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • July 28 - AllianceBernstein Q2 adjusted EPS misses estimates on equity outflows

  • July 28 - UK's Man Group H1 AUM rises to record on investment performance

  • July 27 - Brookfield raises $2 billion for Middle East fund from investors including Saudi Arabia's PIF


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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