It has been about a month since the last earnings report for Affiliated Managers Group (AMG). Shares have added about 5.9% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Affiliated Managers due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Affiliated Managers Group, Inc. before we dive into how investors and analysts have reacted as of late.
Affiliated Managers' Q3 Earnings Beat as AUM & Revenues Increase
Affiliated Managers’ third-quarter 2025 economic earnings of $6.10 per share handily surpassed the Zacks Consensus Estimate of $5.83. The bottom line also jumped 26.6% from the prior-year quarter.
Results benefited from a solid improvement in AUM balance and higher revenues. Also, the company had a robust liquidity position. However, a rise in expenses was the undermining factor.
Economic net income was $179.7 million, up 17.3% year over year. Our estimate for the metric was $166.8 million.
Revenues Rise, Expenses Up
Quarterly total revenues rose 2.2% year over year to $528 million. The top line beat the Zacks Consensus Estimate of $521.1 million.
Adjusted EBITDA was $250.9 million, up 17.2%. We had projected the metric to be $233.3 million.
Total consolidated expenses rose 9.2% to $409.7 million. We had estimated total expenses to be $417.8 million.
AUM Rises
As of Sept. 30, 2025, total AUM was $803.6 billion, which increased 10.3%. Our estimate for total AUM was $780.8 billion.
Moreover, average AUM totaled $786.9 billion, up 10.6% year over year.
Net client cash outflows were $2.8 billion in the reported quarter.
Capital & Liquidity Position Decent
As of Sept. 30, 2025, Affiliated Managers had $476.1 million in cash and cash equivalents compared with $950 million as of Dec. 31, 2024. The company had $2.37 billion of debt, down from $2.62 billion as of Dec. 31, 2024.
Stockholders’ equity as of Sept. 30, 2025, was $3.34 billion, down from $3.35 billion as of Dec. 31, 2024.
Update on Share Repurchases
During the third quarter, Affiliated Managers repurchased shares worth $77 million.
Fourth-Quarter 2025 Outlook
Management expects adjusted EBITDA in the $325-$370 million range based on the current AUM levels and net performance fees of $75-$120 million. This guidance includes a full quarter contribution from the company’s investment in Montefiore Investment, final quarter contribution from Comvest's private credit business and no impact from its announced investment in Qualitas Energy and BBH Credit Partners, which are expected to close in the fourth quarter of 2025 and first quarter of 2026, respectively.
Interest expenses are expected to be $32 million. Controlling interest depreciation is likely to be $1 million.
Net income (controlling interest) is expected to be between $189 million and $223 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.
Economic net income (controlling interest) is projected in the range of $234-$267 million.
Economic EPS is expected to be between $8.10 and $9.26.
The adjusted weighted average share count is estimated to be $28.9 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in estimates revision.
The consensus estimate has shifted 7.88% due to these changes.
VGM Scores
Currently, Affiliated Managers has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Affiliated Managers has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Affiliated Managers belongs to the Zacks Financial - Investment Management industry. Another stock from the same industry, Invesco (IVZ), has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Invesco reported revenues of $1.19 billion in the last reported quarter, representing a year-over-year change of +7.4%. EPS of $0.61 for the same period compares with $0.44 a year ago.
For the current quarter, Invesco is expected to post earnings of $0.57 per share, indicating a change of +9.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.2% over the last 30 days.
Invesco has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Affiliated Managers Group, Inc. (AMG): Free Stock Analysis Report Invesco Ltd. (IVZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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