Yahoo Finance Artisan Partners (APAM) Down 2.9% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Artisan Partners Asset Management (APAM). Shares have lost about 2.9% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Artisan Partners due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Artisan Partners Q1 Earnings Beat Estimates, AUM Rises
Artisan Partners reported first-quarter 2023 adjusted net income per adjusted share of 64 cents, which surpassed the Zacks Consensus Estimate of 59 cents. The bottom line, however, plunged 35% year over year.
Results benefited from a rise in AUM, lower expenses and an improved balance sheet position. However, lower management fees earned from Separate accounts and the Artisan Funds & Artisan Global Funds weighed on the overall top line.
Net income attributable to Artisan Partners (GAAP basis) was $50.8 million, down from $65.4 million in the prior-year quarter.
Revenues & Expenses Down
First-quarter revenues were $234.5 million, down 16.7% from the year-ago quarter. The top line, however, beat the Zacks Consensus Estimate of $229.6 million.
Management fees earned from the Artisan Funds & Artisan Global Funds fell 17.6% year over year to $144.6 million. Management fees earned from Separate accounts declined 15.2% to $89.8 million.
Total operating expenses amounted to $166.2 million, down 4.8% year over year. The fall was primarily due to lower compensation and benefits and distribution, servicing and marketing costs.
Operating income was $68.3 million, down 36.2% year over year.
AUM Balance Rises
As of Mar 31, 2023, the ending AUM was $138.5 billion, up 8.3% from the previous quarter, mainly due to lower Artisan funds' distribution not reinvested and a decrease in net client cash outflow.
Average AUM totaled $135.4 billion, up 6.3% from the prior quarter.
Balance Sheet Position Improves
Cash and cash equivalents were $150.6 million compared with $114.8 million as of Dec 31, 2022. Artisan Partners’ debt leverage ratio, calculated in accordance with its loan agreements, was 0.6 as of Mar 31, 2023.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Artisan Partners has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Artisan Partners has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Artisan Partners belongs to the Zacks Financial - Investment Management industry. Another stock from the same industry, Ameriprise Financial Services (AMP), has gained 3.3% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
Ameriprise reported revenues of $3.7 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $7.25 for the same period compares with $5.98 a year ago.
For the current quarter, Ameriprise is expected to post earnings of $7.52 per share, indicating a change of +29.4% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.
Ameriprise has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Artisan Partners Asset Management Inc. (APAM) : Free Stock Analysis Report
Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
