Invesco (IVZ) Up 1.8% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Invesco's Q3 2025 earnings report shows strong performance with adjusted earnings surpassing estimates and record AUM, despite some challenges from increased operating expenses and a non-cash impairment charge [2][3]. Financial Performance - Adjusted earnings for Q3 2025 were 61 cents per share, exceeding the Zacks Consensus Estimate of 45 cents, marking a 38.6% increase year-over-year [2]. - Net income attributable to common shareholders was $301.3 million or 66 cents per share, up from $55 million or 12 cents per share in the same quarter last year [3]. - Adjusted net revenues reached $1.19 billion, a 7.4% increase year-over-year, meeting the Zacks Consensus Estimate [4]. Assets Under Management (AUM) - AUM as of September 30, 2025, was a record $2.12 trillion, reflecting an 18.3% year-over-year increase [5]. - The average AUM for the third quarter was $2.06 trillion, also up 18.3% [5]. - Long-term net inflows for the quarter totaled $28.9 billion, driven by ETFs, Index, China JV, India, Fundamental Fixed Income, and Private Markets [5]. Expenses and Margins - Adjusted operating expenses were $780.2 million, a 3.3% increase year-over-year [4]. - The adjusted operating margin improved to 34.2%, up from 31.6% a year ago [4]. Balance Sheet and Share Repurchases - Cash and cash equivalents as of September 30, 2025, were $973.1 million, up from $922.7 million as of June 30, 2025 [6]. - Long-term debt stood at $1.62 billion [6]. - In the reported quarter, Invesco repurchased 1.2 million shares for $25 million [7]. Future Outlook - Management anticipates one-time implementation costs of Alpha to be between $10 million and $15 million in Q4 2025 [8]. - The expected non-GAAP effective tax rate for Q4 2025 is projected to be in the range of 25-26% [8]. - The total payout ratio is expected to be near 60% in 2025 and 2026 [9]. Market Sentiment - There has been an upward trend in estimates for Invesco, indicating positive market sentiment [10]. - Invesco currently holds a Zacks Rank 1 (Strong Buy), suggesting expectations for above-average returns in the coming months [12]. Investment Scores - Invesco has a subpar Growth Score of D and a Momentum Score of F, but a grade of B on the value side, placing it in the top 40% for this investment strategy [11]. - The aggregate VGM Score for Invesco is C, which is relevant for investors not focused on a single strategy [11].