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What Could Affect Invesco’s Performance in Q2 2018?

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Earnings per share

Invesco (IVZ) reported EPS of $0.67 in the first quarter. Its competitors (XLF) BlackRock (BLK), State Street (STT), and T. Rowe Price Group (TROW) reported EPS of $6.70, $1.62, and $1.77, respectively, in the first quarter.

In addition, the company’s CEO, Martin L. Flanagan, expressed positive views regarding Guggenheim Investments’ ETF business acquisition. This acquisition was also the primary contributor to the month-over-month rise in the company’s AUM (assets under management) in April.

Expectations

Wall Street analysts expect Invesco to report EPS of $0.67 in the second quarter, implying a marginal year-over-year rise. In the second quarter of 2017, the company reported EPS of $0.64.

At the beginning of the second quarter, the earnings season aided the stock markets, positively affecting Invesco’s AUM. However, trade war fears largely offset the positive impact of the earnings season. Thus, the company is expected to report the same EPS in the second quarter compared to the first quarter.

In the second quarter, Invesco should benefit from a sequential rise in its total AUM primarily due to improvements in the performance of the equity markets. Invesco’s CEO also expressed a favorable view on the company’s acquisition of Intelliflo, which should help it increase its penetration in UK markets.

In this series, we’ll study the factors that could drive Invesco’s performance, valuations, and analyst ratings.

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