Invesco 3Q earns rise 2 percent on strong inflows
ATLANTA (AP) — Invesco Ltd. on Wednesday said its third-quarter earnings rose 2 percent as the money manager attracted nearly $12 billion in new cash from investors, boosting its fee revenue. But higher expenses cut into the company's bottom line, and earnings and revenue were both slightly below Wall Street's expectations.
Invesco reported net income of $170.6 million, or 38 cents per share, for the three months ended Sept. 30. That was up from $166.9 million, or 36 cents per share, in the same quarter a year ago.
Excluding one-time items, Invesco reported adjusted earnings of 42 cents per share, unchanged from the year-ago quarter.
That fell short of the consensus forecast of analysts surveyed by FactSet, who expected 45 cents per share.
Revenue increased 4 percent to $1.04 billion from $997.8 million, but was short of analysts' expectations of nearly $1.06 billion.
The Atlanta-based company reported a nearly 5 percent increase in its largest source of revenue, investment management fees, which climbed to $818 million.
That increase was due in part to the $11.7 billion in net deposits that the company's mutual funds and other investment products attracted during the quarter. President and CEO Martin Flanagan said it was one of the strongest quarterly inflows in Invesco's history.
Assets under management were $683 billion at the end of the quarter, up 14 percent from a year ago. The increase was due to market appreciation boosting the value of investments, as well as new cash from investors.
The 4 percent increase in revenue wasn't enough to offset Invesco's 7 percent rise in expenses, which increased to $825.4 million. Compensation, the largest expense line for the 6,101-employee company, rose 8 percent.
Shares of Invesco rose 43 cents, or 1.8 percent, to $24.75 in midday trading. The shares have traded in a 52-week range of $17.71 to $26.94.