AMG's Q3 Earnings on the Deck: Here's What You Should Know

Affiliated Managers Group Inc. AMG is slated to announce third-quarter 2025 results on Nov. 3, before the opening bell. Its quarterly earnings and revenues are expected to have improved year over year.

In the last reported 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 3.23%.
 

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 Q3

In August, Affiliated Managers agreed to offload its interest in Comvest Partners’ private credit business to Manulife Financial Corporation. The all-cash transaction, valued at nearly $285 million, is expected to be concluded in the fourth quarter of 2025, subject to customary closing conditions.

In July, AMG announced a definitive agreement to acquire a minority stake in Montefiore Investment, a premier middle-market private equity firm in France and Southern Europe. The move underscores the company’s strategy of selectively partnering with leading independent asset managers to expand its global footprint and diversify earnings.

In the same month, Affiliated Managers completed the sale of its equity interest in Peppertree Capital Management, Inc. for approximately $240 million to TPG Inc.. Of the total consideration, roughly $102 million was in cash, subject to certain closing adjustments and almost 2.9 million TPG Class A common shares. The company originally partnered with Peppertree to support its expansion in the digital infrastructure space.

Key AMG Management Expectations for Q3

Management expects adjusted EBITDA in the $230-$240 million range based on the current AUM levels and seasonally lower net performance fees of up to $10 million. This guidance includes a full quarter contribution from the company’s investment in Verition, final quarter contribution from Peppertree and no impact from its announced investment in Qualitas Energy and Montefiore Investment, both of which are expected to close by this year’s end.

Interest expenses are expected to be $33 million. Controlling interest depreciation is likely to be $1 million.

Net income (controlling interest) is expected to be between $121 million and $129 million. The company’s share of reported amortization and impairments is anticipated to be $27 million.

Intangible-related deferred taxes are projected to be $16 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 are reported with our Earnings ESP Filter.

Earnings ESP: The Earnings ESP for Affiliated Managers is +0.56%.

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 Q3

The Zacks Consensus Estimate for AMG’s earnings is pegged at $5.83, which has moved 1.7% upward over the past month. The figure indicates a 21% rise from the year-ago quarter’s reported number.

The company expects economic net income (controlling interest) of $165-$173 million. Also, economic earnings per share are projected to be between $5.62 and $5.87.

The consensus estimate for sales is pegged at $521.13 million, indicating almost 1% growth.

Q3 Performance of Affiliated Managers’ Peers

Invesco’s IVZ third-quarter 2025 adjusted earnings of 61 cents per share surpassed the Zacks Consensus Estimate of 45 cents by a huge margin. The bottom line increased 38.6% from the prior-year quarter.

The results of Invesco were primarily aided by an increase in adjusted revenues. Moreover, growth in the AUM balance to record levels supported the results to an extent. However, an increase in adjusted operating expenses was a headwind.

SEI Investments Co.’s SEIC third-quarter 2025 earnings per share of $1.30 beat the Zacks Consensus Estimate of $1.25. Moreover, the bottom line reflected a rise of 9.2% from the prior-year quarter.

SEIC’s results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport.

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

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