Invesco Q1 Profit Beats Estimates; AUM Increases; Shares Up In Pre-market

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(RTTNews) - Invesco Ltd. (IVZ), an independent investment management firm, Tuesday reported higher profit for the first quarter primarily helped by growth in revenue. Earnings also beat the Street expectations. Following the news, the company's shares were more than 4% up in pre-market.

Net income for the three-month period increased to $171.1 million or $0.38 per share from $141.5 million or $0.31 per share a year ago.

Excluding one-time items, earnings were $200.5 million or $0.44 per share, that beat the analysts' average estimate of $0.38 per share. Analysts' estimates typically exclude special items.

Operating income was registered at $277.3 million, 30.1% up from $213.1 million in the prior year.

Operating revenues also rose 3.7% to $1.529 billion from $1.475 billion last year.

Net revenue for the quarter grew 5.3% to $1.109 billion from $1.053 billion in the previous year. The consensus estimate was for $1.11 billion.

Assets under management or AUM as at the end of the quarter was $1,844.8 billion, 11% higher than $1,662.7 billion last year.

The company set a first-quarter dividend of $0.21 per share, payable on June 3, to shareholders of record on May 14.

Additionally, Invesco announced an agreement with MassMutual for Invesco to buy back $1 billion of its $4 billion of outstanding Invesco Ltd. Series A Preferred Stock otherwise noncallable until May 2040.

Invesco expects the repurchase, which is expected to close in May 2025, to reflect in its earnings beginning in the second half of this year.

Furthermore, Invesco and Barings, MassMutual's asset management subsidiary, announced today a new strategic product and distribution partnership agreement for U.S. Wealth channels. MassMutual intends to support this initiative with a $650 million initial investment.

Invesco stock had closed at $12.46, down 2.66% on Monday. It has traded in the range of $11.60 - $19.55 in the last 1 year.