/Invesco%20Ltd%20building%20logo-by%20Poetra_RH%20via%20Shutterstock.jpg)
Atlanta, Georgia-based Invesco Ltd. (IVZ) operates as an independent investment manager and offers a wide range of investment products and services. Valued at nearly $8 billion by market cap, Invesco’s clientele includes retail investors, institutions, HNIs, corporations, endowments, pension funds, and more.
The asset manager is expected to release its fourth-quarter earnings on Tuesday, Jan. 28. Ahead of the event, analysts expect Invesco to report a non-GAAP profit of $0.48 per share, up 2.1% from $0.47 per share reported in the year-ago quarter. The company’s earnings surprise history is mixed. It has surpassed or matched analysts’ bottom-line estimates thrice over the past four quarters while missing on one other occasion. Its adjusted EPS for the last reported quarter surged 25.7% year-over-year to $0.44, matching the consensus estimates.
For fiscal 2024, analysts expect Invesco to deliver an adjusted EPS of $1.70, representing a 12.6% surge from $1.51 in fiscal 2023. While in fiscal 2025, its earnings are expected to grow 12.4% year-over-year to $1.91.
Invesco stock prices have declined 2.8% over the past 52 weeks, significantly underperforming the S&P 500 Index’s ($SPX) 27.2% gains and the Financial Select Sector SPDR Fund’s (XLF) 28.3% returns during the same time frame.
Invesco has been facing revenue challenges amid a sustained shift in its Assets Under Management (AUM) mix towards lower-fee investment products such as ETFs. This shift is driven by the broader market's movement towards passive investment products, which yield lower fee revenues for asset managers.
Despite these pressures, Invesco's stock experienced a slight gain after the release of its Q3 earnings on Oct. 22. The company reached a milestone with record long-term AUM and $16.5 billion in long-term net inflows. Fueled by positive organic growth across all geographies, Invesco's total operating revenues rose by 5.1% year-over-year to $1.5 billion. Concurrently, its non-GAAP adjusted net income to shareholders surged 25.5% year-over-year to $199.8 million.
Analysts have remained cautious about IVZ’s prospects, the stock has a consensus “Hold” rating. Out of the 16 analysts covering the stock, one advises “Strong Buy,” 14 recommend “Hold,” and one suggests a “Strong Sell” rating. Its mean price target of $19.08 represents a 9.7% premium to current price levels.
