AMG Q1 Earnings Beat Estimates as AUM Increases, Stock Up

Affiliated Managers Group Inc.’s AMG first-quarter 2025 economic earnings of $5.20 per share handily surpassed the Zacks Consensus Estimate of $5.10. The bottom line, however, declined 3.2% from the prior-year number.

Shares of AMG have jumped more than 5% in pre-market trading in response to the better-than-expected results and bullish broader market sentiments.

Results benefited from an improvement in the assets under management (AUM) balance. Further, the company had a robust liquidity position. However, a rise in expenses and a slight fall in revenues were the undermining factors.

Economic net income was $158.7 million, down 15% year over year. Our estimate for the metric was $156.2 million.

AMG’s Revenues Fall, Expenses Rise

Quarterly total revenues declined marginally year over year to $496.6 million. The top line missed the Zacks Consensus Estimate of $516.5 million.

Adjusted EBITDA was $228.2 million, down 12.2%. We projected the metric to be $224 million.

Total consolidated expenses jumped 19.8% to $456.9 million. We had projected total expenses of $384.2 million.

Affiliated Managers’ AUM Rises

As of March 31, 2025, the total AUM was $712.2 billion, which grew 1.8%. Our estimate for total AUM was $717.7 billion.

Net client cash outflows were $0.4 billion in the reported quarter.

AMG’s Capital & Liquidity Position Decent

As of March 31, 2025, Affiliated Managers had $816.5 million in cash and cash equivalents compared with $950 million as of Dec. 31, 2024. The company had $2.62 billion of debt, almost at the same level as on Dec. 31, 2024.

Stockholders’ equity as of March 31, 2025, was $3.19 billion, down from $3.35 billion as of Dec. 31, 2024.

Update on AMG Share Repurchases

During the first quarter, Affiliated Managers repurchased shares worth $173 million.

Our View on Affiliated Managers

Affiliated Managers is well-positioned for growth given the successful partnerships, global distribution capability and a diverse product mix. However, substantial intangible assets on the company's balance sheet and the tough operating backdrop are major near-term concerns.
 

Affiliated Managers Group, Inc. Price, Consensus and EPS Surprise

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

Affiliated Managers currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of AMG’s Peers

T. Rowe Price Group, Inc.’s TROW first-quarter 2025 adjusted earnings per share of $2.23 beat the Zacks Consensus Estimate of $2.09. Nonetheless, the bottom line decreased 6.3% year over year. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

TROW's results benefited from higher investment advisory fees and a rise in AUM. On the other hand, higher expenses and negative capital allocation-based income were headwinds. 

Franklin Resources Inc. BEN reported second-quarter fiscal 2025 (ended March 31) adjusted earnings of 47 cents per share, which matched the Zacks Consensus Estimate. However, the bottom line compared unfavorably with 56 cents reported in the year-ago quarter.

BEN’s results were affected by lower revenues and AUM balance. Yet, lower expenses supported the results to some extent.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research