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Invesco IVZ is slated to report first-quarter 2025 results on April 22, before market open. The company’s quarterly earnings and revenues are expected to have witnessed a rise on a year-over-year basis.
In the last reported quarter, IVZ’s adjusted earnings beat the Zacks Consensus Estimate. Results benefited from a decline in adjusted expenses and higher adjusted net revenues. An increase in the assets under management (AUM) balance on decent inflows was a positive too.
Invesco has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two quarters, met once and lagged in one of the trailing four quarters, with the average surprise being -0.97%.
Invesco Ltd. Price and EPS Surprise
Invesco Ltd. price-eps-surprise | Invesco Ltd. Quote
Invesco’s Key Q1 Estimates & Factors to Note
Per the monthly metrics data published by Invesco, its preliminary total AUM as of March 31, 2025, was $1.84 trillion, relatively stable on a sequential basis. The market turmoil because of Trump’s tariff plans since mid-February is likely to have affected inflows. Hence, the company’s investment management fees are expected to have declined. The Zacks Consensus Estimate for investment management fees is pegged at $1.11 billion, indicating a decrease of 1.5% from the last quarter.
Similarly, the consensus estimate for performance fees of $7 million indicates a 79.4% plunge from the prior quarter.
The consensus estimate for service and distribution fees of $381 million indicates no change. The Zacks Consensus Estimate for other revenues is pegged at $53 million, suggesting a 3.9% rise.
On the cost front, while Invesco’s cost-saving initiatives are likely to have boosted its efficiency, the steady rise in compensation and marketing costs is expected to have had an adverse impact on overall expenses in the to-be-reported quarter.
Management expects the one-time implementation costs of Alpha to be approximately $10-15 million in the first quarter of 2025. Hence, the company expects a modest increase in the overall expenses in the quarter.
What Our Model Predicts for IVZ
According to our proven model, the chances of Invesco beating the Zacks Consensus Estimate for earnings this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Invesco is -0.64%
Zacks Rank: The company currently carries a Zacks Rank of 4 (Sell).