Invesco(US:IVZ) ZACKS·2025-10-21 14:36Core Insights - Invesco (IVZ) is expected to report a year-over-year increase in both earnings and revenues for Q3 2025, with results scheduled for release on October 28, 2025 [1] - The company has a history of earnings surprises, having exceeded the Zacks Consensus Estimate in two of the last four quarters, with an average surprise of 1.69% [2] Q3 Estimates and Performance Factors - As of September 30, 2025, Invesco's preliminary total assets under management (AUM) reached $2.12 trillion, reflecting a sequential increase of 6.2%, driven by strong market returns and net long-term inflows [3] - The Zacks Consensus Estimate for investment management fees is $1.2 billion, indicating an 8.8% rise from the previous quarter [3] - Performance fees are estimated at $5.6 million, showing significant growth from the prior quarter [4] - Service and distribution fees are projected at $403.5 million, representing a sequential growth of 10.9% [4] - Other revenues are expected to be $55.3 million, suggesting a 14.7% increase [4] Cost Considerations - While cost-saving initiatives may have improved efficiency, increased compensation and marketing costs are anticipated to negatively impact overall expenses for the quarter [5] - Management expects one-time implementation costs related to Alpha to be between $15 million and $20 million in Q3 2025 [5] Major Developments - In August, Invesco announced plans to divest intelliflo to The Carlyle Group for up to $200 million, with $135 million payable at closing expected in Q4 2025 and up to an additional $65 million in potential future earn-outs [6] - Intelliflo supports over 30,000 professionals across 2,600 advisory firms, managing approximately £450 billion in client assets [7] - The acquisition includes intelliflo's cloud-based practice management software in the U.K. and its U.S. subsidiaries [8] Earnings Predictions - The Zacks Consensus Estimate for Invesco's earnings is 46 cents, unchanged over the past week, indicating a 4.6% increase from the year-ago quarter [12] - The consensus estimate for sales is $1.18 billion, suggesting a 6.5% increase [12] - The likelihood of Invesco beating the Zacks Consensus Estimate for earnings is low, with an Earnings ESP of -1.80% [10]