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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 Rise
Quarterly 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 Rises
As 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 Decent
As 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 Repurchases
During the fourth quarter, Affiliated Managers repurchased shares worth $120 million.
AMG Buys Minority Equity Stake in NorthBridge Partners
Affiliated 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.”