AMG Beats on Q4 Earnings, Buys Stake in NorthBridge Partners

Affiliated Managers Group Inc.’s AMG fourth-quarter 2024 economic earnings of $6.53 per share handily surpassed the Zacks Consensus Estimate of $6.02. The bottom line, however, declined 4.8% from the prior-year number.Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.Results benefited from higher revenues and an improvement in the assets under management (AUM) balance. Further, the company had a robust liquidity position. However, a rise in expenses was the undermining factor.Economic net income was $205.8 million, down 15.3% year over year. Our estimate for the metric was $189 million.For 2024, economic earnings per share of $21.36 beat the consensus estimate of $20.90 and grew 9.7% year over year. Economic net income was $701.6 million, down 2.3% from 2023.AMG’s Revenues Up, Expenses RiseQuarterly total revenues increased 4.3% year over year to $524.2 million. However, the top line missed the Zacks Consensus Estimate of $530.4 million.For 2024, total revenues declined almost 1% year over year to $2.04 billion. Further, the top line missed the Zacks Consensus Estimate of $2.05 billion.Adjusted EBITDA was $281.7 million, down 4.9%. We projected the metric to be $266.2 million.Total consolidated expenses rose 2.2% to $392.5 million. We had projected total expenses of $362.9 million.Affiliated Managers’ AUM RisesAs of Dec. 31, 2024, the total AUM was $707.9 billion, which grew 5.2%. Our estimate for total AUM was $736.4 million.Net client cash outflows were $8.3 billion in the reported quarter.AMG’s Capital & Liquidity Position DecentAs of Dec. 31, 2024, Affiliated Managers had $950 million in cash and cash equivalents compared with $813.6 million as of Dec. 31, 2023. The company had $2.62 billion of debt, down from $2.54 billion as of Dec. 31, 2023.Stockholders’ equity as of Dec. 31, 2024, was $3.35 billion, down from $3.59 million as of Dec. 31, 2023.Update on AMG Share RepurchasesDuring the fourth quarter, Affiliated Managers repurchased shares worth $120 million.AMG Buys Minority Equity Stake in NorthBridge PartnersAffiliated Managers acquired a minority equity interest in NorthBridge Partners, LLC, a leading vertically integrated real estate investment manager specializing in industrial logistics assets. The financial terms of the deal were not revealed.With almost $2 billion in AUM, NorthBridge Partners invests in last-mile logistics properties, acquiring, repositioning and developing strategically located real estate assets in major markets.Jay C. Horgen, president and CEO of AMG said, “Given the growing demand for industrial logistics assets, and the entrepreneurialism of its principals, NorthBridge has excellent forward prospects, and AMG’s strategic partnership solutions can magnify the firm’s long-term success.”Our View on Affiliated ManagersAffiliated 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. QuoteAffiliated 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 PeersT. Rowe Price Group, Inc.’s TROW fourth-quarter 2024 adjusted earnings per share of $2.12 lagged the Zacks Consensus Estimate of $2.23. Nonetheless, the bottom line increased 23.3% year over year.TROW's results were affected by higher expenses. However, net revenues were supported by a rise in AUM. Further, appreciation in cash and cash equivalents will help the company to continue investing.Lazard Inc.’s LAZ fourth-quarter 2024 adjusted earnings per share of 78 cents topped the Zacks Consensus Estimate of 51 cents. This compared favorably with earnings of 66 cents in the year-ago quarter.LAZ’s results were positively impacted by increases in revenues in the financial advisory, asset management and Corporate segments. A decline in expenses was added positive. However, the lower AUM balance acted as a spoilsport.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report Lazard, Inc. (LAZ): Free Stock Analysis Report Affiliated Managers Group, Inc. (AMG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks