Affiliated Managers' Q2 Earnings Coming Up: Here's What to Expect

Affiliated Managers Group Inc. AMG is slated to announce second-quarter 2025 results tomorrow, before the opening bell. Its quarterly earnings and revenues are expected to have improved year over year.

In the last quarter, AMG’s earnings beat the Zacks Consensus Estimate. Results benefited from a rise in assets under management (AUM). However, a rise in expenses and a slight fall in revenues were the undermining factors.

The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in three of the trailing four quarters and matched once, with the average beat being 2.99%.
 

Affiliated Managers Group, Inc. Price and EPS Surprise

Affiliated Managers Group, Inc. price-eps-surprise | Affiliated Managers Group, Inc. Quote

AMG’s Noteworthy Developments in Q2

In April 2025, Affiliated Managers announced an agreement to acquire a minority equity interest in Verition Fund Management LLC, a global multi-strategy investment firm managing approximately $12.6 billion in assets as of April 1. Verition’s management will retain a significant majority stake, continue leading the firm and maintain full control over daily operations.

In May, it reached a definitive agreement to acquire a minority interest in Qualitas Energy, a global platform focused on renewable energy, energy transition and sustainable infrastructure. Expected to close in the fourth quarter of 2025, the deal aligns Affiliated Managers with accelerating global efforts toward decarbonization.

In the same month, as part of a portfolio realignment, Affiliated Managers announced the sale of its equity stake in Peppertree Capital Management, Inc. to TPG Inc. for approximately $240 million. The consideration includes around $102 million in cash and 2.9 million TPG Class A common shares. The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions.

Key AMG Management Expectations for Q2

Management expects adjusted EBITDA in the $210-$225 million range based on the current AUM levels and seasonally lower net performance fees of up to $10 million. This includes a partial contribution from the company’s investment in Verition and no impact from its announced investment in Qualitas Energy or the sale of interest in Peppertree, both of which are expected to close later this year.

Interest expenses are expected to be $34 million. Controlling interest depreciation is likely to be $2 million.

Net income (controlling interest) is expected to be between $104 million and $115 million. The company’s share of reported amortization and impairments is anticipated to be $29 million.

Intangible-related deferred taxes are projected to be $15 million. Other economic items, which now include realized gains, are anticipated to be roughly $1 million.

Earnings Whispers for Affiliated Managers

Our quantitative model predicts an earnings beat for Affiliated Managers this time. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better. This is just the case here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Affiliated Managers is +0.20%.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AMG’s Earnings & Sales Projections for Q2

The Zacks Consensus Estimate for AMG’s earnings is pegged at $5.25, which has moved 1.2% upward over the past month. The figure indicates a 12.4% rise from the year-ago quarter’s reported number.

The company expects economic net income (controlling interest) of $148-$159 million. Also, economic earnings per share are projected to be between $5.01 and $5.39.

The consensus estimate for sales is pegged at $510.2 million, indicating 2% growth.

Q2 Performance of Affiliated Managers’ Peers

SEI Investments Co.’s SEIC second-quarter 2025 earnings per share (EPS) of $1.78 beat the Zacks Consensus Estimate of $1.18. Moreover, the bottom line reflected a rise of 70% from the prior-year quarter.

Results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport for SEIC.

Invesco’s IVZ second-quarter 2025 adjusted earnings of 36 cents per share lagged the Zacks Consensus Estimate of 40 cents. Moreover, the bottom line declined 16.3% from the prior-year quarter.

Invesco’s results were adversely impacted by higher adjusted operating expenses. However, a rise in adjusted net revenues was a tailwind. An increase in the AUM balance, driven by solid inflows, was another positive.

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This article originally published on Zacks Investment Research (zacks.com).

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