AllianceBernstein (AB) shares up 1.5% on 4th quarter earnings

Shares of AllianceBernstein (AB Free report) has increased by 1.5% since the publication of the results in the fourth quarter and 2020 last week. Quarterly adjusted earnings of 97 cents per The stock surpassed Zacks Consensus Estimate by 83 cents. Furthermore, the bottom line compares positively with the reported quarter-quarter figure of 85 cents.

The results have benefited from revenue growth and improved assets under management (AUM). However, higher operating expenses were headwinds.

Net income available to common shareholders (GAAP basis) was $ 93.2 million, down from $ 80 million seen in the quarter last year.

In 2020, the adjusted earnings per. Unit $ 2.91 compared to the previous year’s $ 2.52. Net income available to common shareholders (GAAP basis) was $ 279 million, increasing 17% year over year.

Adjusted income rises, expenses flare up

Revenue for the reported quarter was $ 879.8 million, an increase of 8% over the previous year. It also surpassed the Zacks Consensus Estimate of $ 784 million. This recovery was primarily driven by higher performance-based fees, Bernstein Research revenues and investment advisory base. These were partially offset by investment losses and lower net dividends and interest income.

In 2020, net income increased by DKK 3 billion. $ 5% year over year.

Operating expenses of $ 579 million flared up 5% compared to Q4 2019. Higher total employee compensation and benefits were partially negated by a decrease in sales promotions and service costs and amortization of intangible assets.

Operating income came to $ 301.2 million, an increase of 14% from year to year.

The profit margin was 34.2%, compared to last quarter 32.3%.

Total AUM improves

As of December 31, 2020, the total AUM was $ 685.9 billion, an increase of almost 10% over the year. The company witnessed a net inflow of DKK 3.2 billion. $ In the quarter compared to the previous quarter 6.5 billion. $.

In 2020, the company reported 2.6 billion. Dollars of the net outflow compared to the net inflow of 25.2 billion. Dollars in 2019.

Device Repurchase Update

In the fourth quarter, AllianceBernstein repurchased 3.6 million units for $ 116.8 million. These included open market purchases.

Our Take

Growth in the company’s AUM balance sheet, increasing active organic growth as well as higher fees will support its finances in the coming days. However, market volatility, which affects its investment and income gains, is a problem.

AllianceBernstein currently has a Zacks Rank # 2 (Buy). You can see the complete list of today’s Zacks # 1 Rank (Strong Buy) shares here.

Execution of other asset managers

BlackRock, Inc.‘s (BLK Free report) fourth quarter 2020 adjusted earnings of $ 10.18 per. share outperformed Zacks Consensus Estimate at $ 9.17. In addition, the figure was 22% higher than in the quarter last year.

Blackstone Group (BX Free report) reported fourth-quarter 2020 distributable earnings of $ 1.13, beating the Zacks Consensus Estimate at 93 cents. The figure also witnessed an improvement over the 41 cents earned in the previous quarter.

Affiliated Managers Group, Inc.‘s (AMG Free report) adjusted earnings total $ 4.22 per. share for the October-December quarter, which exceeded the Zacks Consensus Estimate by 49 cents. Still, it came in 6.6% lower than the quarter last year.

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