2023-04-25 12:01:49 ET
Even as Q1 earnings declined from both the previous quarter and year-ago quarter, Invesco ( NYSE: IVZ ) beat Wall Street expectations on Tuesday as the asset manager reduced its operating expenses.
The company also raised its quarterly dividend by 6.7% to $0.20 per share.
Q1 adjusted EPS of $0.38 , exceeding the $0.36 consensus, slipped from $0.39 in Q4 2022 and from $0.56 in Q1 2022.
"Although organic growth remains lower across our industry, Invesco's diversified platform generated $2.9B of net long-term inflows in the first quarter, marking a return to organic growth," said President and CEO Marty Flanagan. "This progress is especially significant considering the mixed flow picture for the industry in the quarter."
Net long-term inflows of $2.9B reversed from $3.2B of net long-term outflow in Q4 2022. Institutional net long-term inflows of $6.6B more than offset retial net long-term outflows of $3.7B during the quarter.
Net market gains increased assets under management by $61.9B during the quarter and foreign exchange rate movements added $1.9B. Invesco ( IVZ ) saw inflows of $7.7B from money market funds and outflows of $1.6B from non-management fee earnings products during the quarter.
Ending AUM of $1.48T increased 5.2% during the quarter and dropped 4.7% from March 31, 2022.
Q1 net revenue of $1.08B, trailing the $1.10B consensus, declined by 2.9% Q/Q and by 14% Y/Y.
Q1 adjusted operating expenses of $749.0M, lower than the Visible Alpha consensus of $760.4M, fell from $769.2M in the prior quarter and from $757.8M in the year-ago period.
Adjusted operating margin of 30.4% edged down from 30.6% in the prior quarter and declined from 39.5% in the year-ago quarter.
Earlier, Invesco ( IVZ ) non-GAAP EPS of $0.38 beats by $0.02, revenue of $1.08B misses by $20M.
More on Invesco:
AUM gains 1.7% in March, helped by equity, fixed income
Market Continues to Underprise AUM Scale Advantage
Invesco upgraded to Netural at Credit Suisse on limited downside
Invesco names Andrew Schlossberg to succeed Marty Flanagan as president, CEO
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Invesco Q1 earnings decline but still beat Wall Street consensus