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Artisan Partners (APAM) Q1 Earnings Top Estimates, AUM Rises

Artisan Partners Asset Management APAM first-quarter 2021 adjusted earnings came in at $1.13 per share, surpassing the Zacks Consensus Estimate of $1.10. Also, the bottom line was 71% higher than the year-ago quarter figure.

Results were supported by rise in revenues. Also, higher assets under management (AUM) on net inflows acted as a tailwind. However, higher expenses posed an undermining factor.

Net income available to common stockholders (GAAP basis) was $77.3 million or $1.19 per share, up from $34.8 million or 53 cents per share in the prior-year quarter.

Revenues Climb, Expenses Increase

Revenues came in at $290.7 million, up 43% from the year-ago quarter. The rise primarily resulted from higher average AUM balance. Also, the top line surpassed the Zacks Consensus Estimate of $266 million.

Management fees earned from the Artisan Funds & Artisan Global Funds were up 44% year over year to $176.7 million. Management fees earned from Separate accounts increased 39% to $107.3 million.

Total expenses amounted to $168.9 million, up 28% year over year. The rise was largely due to higher employee compensation and benefits expenses.

Operating income was $121.8 million, up considerably from $71 million in the year-ago quarter.

AUM Increases on Net Inflows

As of Mar 31, 2021, AUM was $162.9 billion, up 71% from the year-earlier quarter. The company witnessed net inflows of $9 billion and $59.4 billion of investment returns in the first quarter.

Average AUM totaled $162.9 billion, up 43%.

Balance Sheet Position

Cash and other investments were $215.8 million compared with $155 million as of Dec 31, 2020. Also, the company’s debt leverage ratio, calculated in accordance with its loan agreements, was 0.4 as of Mar 31, 2021.

Total stockholders’ equity was $205.1 million as of Mar 31, 2021, compared to $191.0 million on Dec 31, 2020.

Our Viewpoint

Artisan Partners’ diverse investment products are expected to support growth. Also, rise in AUM given the inflows supports top-line expansion. Moreover, prudent cost management aids profitability to some extent.

 

 

Currently, Artisan Partners carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

Ameriprise Financial’s AMP first-quarter 2021 adjusted operating earnings per share of $5.43 handily surpassed the Zacks Consensus Estimate of $4.73. Moreover, the bottom line comes in 27% higher than the year-ago quarter.

Invesco’s IVZ first-quarter 2021 adjusted earnings of 68 cents per share surpassed the Zacks Consensus Estimate of 62 cents. Also, the bottom line grew 100% from the prior-year quarter.

Cohen & SteersCNS first-quarter 2021 adjusted earnings of 79 cents per share lagged the Zacks Consensus Estimate of 81 cents. Nevertheless, the bottom line was 29.5% higher than the year-ago figure.

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Invesco Ltd. (IVZ): Free Stock Analysis Report
 
Ameriprise Financial, Inc. (AMP): Free Stock Analysis Report
 
Cohen & Steers Inc (CNS): Free Stock Analysis Report
 
Artisan Partners Asset Management Inc. (APAM): Free Stock Analysis Report
 
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