In This Article:
A month has gone by since the last earnings report for Artisan Partners Asset Management (APAM). Shares have lost about 6.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Artisan Partners due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Artisan Partners Q4 Earnings & Revenues Rise Y/Y, AUM Balance Declines
Artisan Partners reported fourth-quarter 2024 adjusted net income per share of $1.05. The bottom line increased 34.6% from the prior-year quarter.
Results benefitted from Global Funds and Separate account growth. The balance sheet position also improved in the reported quarter. However, rising operating expenses acted as headwinds. A sequential decline in the AUM balance was a spoilsport.
Results in the reported quarter excluded certain notable items. After considering these, net income available to common shareholders (GAAP basis) was $69.7 million or 97 cents per share, up from $64.8 million or 92 cents per share in the prior-year quarter.
For 2024, the company reported adjusted net income per share of $3.55. The metric increased 22.8% from the prior year. Net income was $259.7 million, up from $222.3 million in the prior year.
APAM Revenues & Expenses Rise Y/Y
Fourth-quarter revenues were $297 million, which rose 19.3% year over year.
For the year, revenues were $1.11 billion, up 14% year over year.
Management fees earned from Artisan Funds & Artisan Global Funds increased 16.1% year over year to $178.4 million. Management fees earned from Separate accounts grew 13.9% to $103.9 million.
Total operating expenses were $187.9 million, up 8.9% year over year.
Operating income was $109.1 million, up 42.8% year over year.
APAM’s Ending AUM Balance Declines Sequentially
As of Dec. 31, 2024, the ending AUM was $161.2 billion, down 3.9% from the previous quarter due to $5 billion of market depreciation, $0.8 billion of net client cash outflows and $0.2 billion of Artisan Funds' distributions, which were not reinvested.
The average AUM totaled $165.4 billion, up 1.6% from the prior quarter.
APAM’s Balance Sheet Position Improves Sequentially
Cash and cash equivalents were $201.2 million as of Dec. 31, 2024 compared with $253.9 million as of Sept. 30, 2024. Artisan Partners’ debt leverage ratio, calculated in accordance with its loan agreements, was 0.5X as of Dec. 31, 2024.