On October 22, 2024, Invesco Ltd (IVZ, Financial) released its 8-K filing for the third quarter ended September 30, 2024. The company reported a diluted EPS of $0.12, falling short of the analyst estimate of $0.38. However, adjusted diluted EPS was $0.44, surpassing expectations. Operating revenues reached $1,515.4 million, exceeding the estimated $1,107.00 million. Invesco, a global investment management firm, manages $1.8 trillion in assets, with a significant presence in both retail and institutional markets.
Company Background
Invesco Ltd (IVZ, Financial) provides investment-management services to retail (66% of managed assets) and institutional (34%) clients. As of August 2024, the firm managed $1.752 trillion in assets across various investment categories, including equity, balanced, fixed-income, alternative investment, and money market operations. The company has a strong presence in the U.S. and internationally, with 28% of its AUM sourced from Europe, Africa, the Middle East, and Asia.
Performance and Challenges
Invesco Ltd (IVZ, Financial) reported $16.5 billion in net long-term inflows for the quarter, driven by ETFs, Index, and Fixed Income products. The firm's AUM reached a record high of $1.8 trillion, a 4.7% increase from the previous quarter. Despite these achievements, the company faced challenges, including a significant one-time non-cash expense of $147.6 million related to changes in retirement criteria for long-term awards, impacting its operating margin, which stood at 6.6%.
Financial Achievements
Invesco's adjusted operating margin improved to 31.6%, reflecting positive operating leverage and improved operating income. The company maintained a strong balance sheet with over $1 billion in cash and cash equivalents and a zero balance on its credit facility. Invesco also repurchased 1.5 million common shares for $25 million during the quarter, demonstrating its commitment to returning value to shareholders.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Operating Revenues | $1,515.4 million | $1,483.3 million | $1,442.0 million |
| Net Income | $55.0 million | $132.2 million | $131.4 million |
| Diluted EPS | $0.12 | $0.29 | $0.29 |
| Adjusted Diluted EPS | $0.44 | $0.43 | $0.35 |
| Ending AUM | $1,795.6 billion | $1,715.8 billion | $1,487.3 billion |
Analysis and Insights
Invesco Ltd (IVZ, Financial) demonstrated resilience in a volatile market environment, achieving record AUM and positive net inflows across regions and asset classes. The company's strategic focus on ETFs and fixed income products contributed significantly to its growth. However, the one-time expense related to long-term awards impacted its GAAP financial metrics, highlighting the importance of adjusted measures for a clearer view of operational performance.
We continued our positive momentum in the quarter. We finished the period with record long-term AUM and $16.5B in long-term net inflows, despite ongoing market volatility across our global platform," said Andrew Schlossberg, President and CEO.
Invesco's ability to maintain a strong balance sheet and execute share repurchases underscores its financial stability and commitment to shareholder value. As the company navigates market challenges, its diversified product offerings and global reach position it well for future growth.
Explore the complete 8-K earnings release (here) from Invesco Ltd for further details.
