Invesco (IVZ) Q3 earnings: what to expect

Invesco Ltd. (NYSE:IVZ), a prominent asset management company, is set to release its earnings report this Tuesday before the market opens. Here’s what investors should be aware of ahead of the announcement.

In the previous quarter, Invesco successfully met analysts' expectations for revenue, generating $1.33 billion, which marked a significant year-over-year increase of 20.3%. The company also exceeded analysts' earnings per share (EPS) predictions, while its assets under management (AUM) aligned with forecasts, indicating a generally positive performance.

As investors consider whether to buy or sell Invesco shares before the earnings report, a comprehensive analysis is available for active Edge members at no cost.

For the current quarter, projections suggest that Invesco's revenue will increase by 16.5% compared to the same period last year, which is an improvement from the 7.4% growth experienced in the same quarter of the previous year. Over the past month, analysts covering the firm have largely maintained their projections, indicating a belief that the company will continue to perform steadily as it approaches the earnings release. However, it is worth noting that Invesco has struggled to meet Wall Street’s revenue expectations on several occasions over the past two years.

Some of Invesco's competitors in the asset management sector have already published their Q3 results, offering insights into potential outcomes for Invesco. Blackstone reported a 2.3% decline in revenue year-over-year but still managed to exceed analysts' expectations by 1.5%. Conversely, SEI Investments posted a 14.4% increase in revenues, surpassing forecasts by 0.5%. Following these announcements, Blackstone's stock rose by 7.6%, while SEI Investments experienced a decline of 3.6%.

For those looking for a more in-depth review, analyses of Blackstone's and SEI Investments' results are available for further reading.

In the lead-up to earnings reports, investors in the asset management sector have displayed a cautious optimism, with average share prices rising by 1.5% over the past month. In contrast, Invesco's stock has dipped by 7.1% during the same period. Currently, analysts have set an average price target of $34.71 for Invesco shares, while the stock is trading at approximately $28.28.

As the market anticipates Invesco's earnings release, investors are urged to stay informed and consider the available analyses to make educated decisions regarding their investments in the company.