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Invesco’s Strong 3Q17 Results Beat Estimates

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EPS estimates

Invesco (IVZ), an investment management company, reported earnings per share (or EPS) of $0.71 in 3Q17, higher than Wall Street analyst predictions of $0.66. The company has maintained its focus on catering to clients’ needs and has put forth a strong investment performance.

Invesco’s 3Q17 operating revenues rose 11.3% on a YoY basis. It reported operating revenues of $1.3 billion in 3Q17 compared to $1.2 billion in 3Q16. However, the company has seen a YoY decline in its total net flows from $19.2 billion in 3Q16 to $11.5 billion in 3Q17, which mainly reflects the decline in the long-term net flows.

Invesco has an enterprise value of $18.1 billion. On the other hand, peers (XLF) Legg Mason (LM), SEI Investments Company (SEIC), and PNC Financial Services (PNC) have reported enterprise values of $5.0 billion, $9.5 billion, and $115.9 billion, respectively.

Invesco beats revenue estimates

Invesco reported revenues of $976.6 million in 3Q17, which is higher than Wall Street analysts’ estimates of $937.8 million. The company witnessed a rise in its total assets under management (or AUM) from $858.3 billion in 2Q17 to $917.5 billion in 3Q17, a 6.9% rise sequentially. In 3Q17, the company’s AUM has seen an addition of $26 billion on the back of the Source acquisition.

On September 30, 2017, Invesco had a total of 6,994 employees, while on June 30, 2017, the company had 6,888 employees. The Source acquisition is the primary reason for the increased number. The company has reported long-term net flows of $6.3 billion in 3Q17 compared to $12.2  billion in 3Q16.

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