AllianceBernstein ( NYSE: AB ) Q3 earnings and revenue declined as asset values declined, reflecting tighter financial conditions, and outflows increased during the quarter. Its earnings beat the average analyst estimate, while revenue fell more than the Street expected.
Against a backdrop of slumping equity and bond markets, total net outflows during the quarter increased to $10.5B from $2.7B in Q2. Excluding AXA redemptions, net outflows were $6.6B in Q2 vs. $2.1B in Q2.
"Growth in alternatives/multi-asset and municipals was outweighed by taxable fixed income and active equity outflows," said President and CEO Seth Bernstein, adding that the company's fee rate improved 7% Y/Y, growing in each channel.
Q3 adjusted EPS of $0.64, topping the $0.58 consensus, fell from $0.71 in Q2 and from $0.89 in Q3 2021.
Adjusted net revenue of $814.0M, trailing the $1.46B consensus, fell from $816.4M in the prior quarter and from $858.6M in the year-ago quarter.
Base fees increased to $700.8M in Q3 from $696.7M in the prior quarter and fell from $758.5M in the year-ago quarter.
Adjusted operating income of $204.4M, fell from $225.8M in Q2 and from $280.7M in Q3 2021.
Q3 adjusted operating margin was 25.1% vs. 27.7% in Q2 and 31.8% in Q3 2021.
Assets under management were $612.7B at Sept. 30, 2022 dropped from $646.8B at June 30, 2022.
Q3 operating expenses of $816.7M rose 4.9% from Q2 and 0.4% from Q3 2021.
"Our institutional pipeline increased to $24.7B, up $14.5B sequentially, driven by a $7.5B custom target-date mandate, $4.6B of CarVal commitments, and additional diversified active mandates," Bernstein said.
Earlier, AllianceBernstein non-GAAP EPS of $0.64 beats by $0.06, revenue of $986.98M misses by $473.02M
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AllianceBernstein Q3 earnings declined as asset values dropped, outflows rose