Invesco (NYSE:IVZ) Announces Quarterly Earnings Results, Misses Estimates By $0.02 EPS

Invesco (NYSE:IVZ) released its earnings results on Tuesday. The asset manager reported $0.72 EPS for the quarter, missing the consensus estimate of $0.74 by ($0.02), Zacks reports. Invesco had a negative net margin of 0.93% and a positive return on equity of 12.83%. The company had revenue of $1.38 billion for the quarter, compared to analyst estimates of $1.38 billion. During the same quarter in the previous year, the company earned $0.61 earnings per share. Invesco’s revenue for the quarter was up 16.5% compared to the same quarter last year.

Here are the key takeaways from Invesco’s conference call:

• Invesco reported strong growth, with $35.1 billion in third-quarter net long-term inflows, a 6.3% annualized organic growth rate, and assets under management above $2.5 trillion. Inflows were broad-based geographically and across active, passive, ETF, multi-asset, and wealth-management offerings.
• Improved scale and expense discipline drove significant operating leverage: adjusted operating income rose nearly 13% sequentially to $562 million, while the adjusted operating margin expanded to 40.7%, its highest level since 2021. Management said it intends to sustain margins in the high-30% range while continuing to invest for growth.
• The company agreed to repurchase an additional $1.5 billion of preferred stock from MassMutual, bringing total repurchases to $3 billion and reducing annual preferred dividends by another $88.5 million. Management expects the transaction to be earnings-accretive in 2027 and to generate approximately $0.20 of run-rate EPS accretion once the related term loan is repaid.
• ETFs and index products continued to be major growth engines, reaching record AUM of $775 billion and nearly $29 billion of quarterly net inflows. QQQ and related products attracted strong demand, while active ETFs, SMAs, model portfolios, and systematic strategies also expanded.
• Asset mix remains a headwind for revenue yields as client demand shifts toward lower-fee ETFs, money-market funds, and index products, while fundamental equities continue to experience net outflows. The net revenue yield declined to 21.5 basis points, and management expects fourth-quarter expenses of $830 million to $840 million, including ongoing hybrid-platform costs.

Invesco Stock Performance

NYSE:IVZ opened at $28.67 on Thursday. The stock has a market capitalization of $12.71 billion, a P/E ratio of -42.16, a price-to-earnings-growth ratio of 0.45 and a beta of 1.65. The company has a current ratio of 1.31, a quick ratio of 1.31 and a debt-to-equity ratio of 1.00. Invesco has a 1 year low of $21.82 and a 1 year high of $33.66. The firm has a 50 day moving average of $30.67 and a 200-day moving average of $28.01.

Invesco Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 2nd. Stockholders of record on Friday, November 13th will be paid a $0.2150 dividend. The ex-dividend date is Friday, November 13th. This represents a $0.86 dividend on an annualized basis and a dividend yield of 3.0%. Invesco’s payout ratio is -126.47%.

Insiders Place Their Bets

In related news, CFO Laura Dukes sold 31,075 shares of the firm’s stock in a transaction on Friday, September 4th. The stock was sold at an average price of $33.16, for a total transaction of $1,030,447.00. Following the completion of the sale, the chief financial officer directly owned 259,183 shares of the company’s stock, valued at $8,594,508.28. This trade represents a 10.71% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Phoebe Wood sold 3,000 shares of Invesco stock in a transaction on Friday, September 11th. The shares were sold at an average price of $32.44, for a total value of $97,320.00. Following the completion of the transaction, the director owned 107,111 shares of the company’s stock, valued at approximately $3,474,680.84. The trade was a 2.72% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 222,540 shares of company stock valued at $7,227,167 in the last 90 days. Insiders own 1.40% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on IVZ. JPMorgan Chase & Co. lifted their target price on Invesco from $29.00 to $29.50 and gave the stock a “neutral” rating in a research report on Wednesday, July 29th. Wall Street Zen downgraded Invesco from a “buy” rating to a “hold” rating in a research report on Sunday, October 18th. BMO Capital Markets boosted their price objective on Invesco from $34.00 to $36.00 and gave the company an “outperform” rating in a research report on Tuesday, October 13th. Evercore set a $34.00 target price on Invesco in a research note on Friday, October 9th. Finally, Zacks Research cut Invesco from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 7th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $33.27.

About Invesco

Invesco Ltd. (NYSE: IVZ) is a global investment management company that provides investment products and services to individual investors, financial professionals, institutions and governments. The company manages assets across a range of strategies, including equities, fixed income, multi-asset portfolios, alternatives, money market funds and cash management.

Invesco offers mutual funds, exchange-traded funds, separately managed accounts, model portfolios and institutional investment solutions.