Sunday, November 2, 2014

Invesco Ltd. Q3-14 Earnings

Invesco Ltd. reported Fiscal Q3 EPS of $.64 beating consensus of $.62.  This represents an increase of 16.4% YoY. The stock is currently trading at $40.47, up 1.99% in After-Market trading.

Total operating revenues for the quarter were $1.3B compared to our estimates of $1.2, reflecting an increase of 11.96% from last year’s Q3. Ending AUM for the quarter were $789.6B, up 5.92% from the same quarter last year. Long term net flows are at $6B representing a 186.96% increase from $-6.9B reported last quarter. Net revenue rose 11.9% from year ago to $913.7 driven mainly by higher investment management fees which are up 14.18% to $1B from $938M Q3-13.

The company is showing a positive outlook on their fundamentals after the departure of Neil Woodford, a longtime fund manager and praised investor, who left the company in April. Woodford departure led to a long term outflow of ($6.9B) in Q2-14 from a $5B in Q3-13. The company since has gained its client confidence up resulting in LT net flows increase of 186.96%.

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