Affiliated Managers (AMG) Up 5.9% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Affiliated Managers Group (AMG) has shown a positive performance with a 5.9% increase in shares since the last earnings report, outperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1][2]. Financial Performance - Q3 2025 economic earnings were reported at $6.10 per share, exceeding the Zacks Consensus Estimate of $5.83, and reflecting a 26.6% increase year-over-year [3]. - Economic net income reached $179.7 million, up 17.3% from the previous year, surpassing the estimate of $166.8 million [4]. - Total revenues for the quarter increased by 2.2% year-over-year to $528 million, beating the Zacks Consensus Estimate of $521.1 million [5]. - Adjusted EBITDA was reported at $250.9 million, a 17.2% increase, exceeding the projected $233.3 million [5]. Assets Under Management (AUM) - As of September 30, 2025, total AUM was $803.6 billion, reflecting a 10.3% increase, surpassing the estimate of $780.8 billion [6]. - Average AUM totaled $786.9 billion, up 10.6% year-over-year, with net client cash outflows of $2.8 billion during the quarter [6]. Capital and Liquidity - The company had $476.1 million in cash and cash equivalents as of September 30, 2025, down from $950 million at the end of 2024 [7]. - Total debt decreased to $2.37 billion from $2.62 billion as of December 31, 2024, while stockholders' equity slightly decreased to $3.34 billion [7]. Share Repurchase Activity - During Q3, Affiliated Managers repurchased shares worth $77 million [8]. Future Outlook - Management anticipates adjusted EBITDA in the range of $325-$370 million for Q4 2025, based on current AUM levels and expected net performance fees of $75-$120 million [9]. - Economic net income (controlling interest) is projected between $234-$267 million, with economic EPS expected to range from $8.10 to $9.26 [11]. Estimate Revisions - There has been an upward trend in estimates revisions, with the consensus estimate shifting by 7.88% in the past month [12]. Investment Strategy Scores - Affiliated Managers has an average Growth Score of C, a Momentum Score of A, and a Value Score of B, resulting in an aggregate VGM Score of A [13]. Industry Context - Affiliated Managers operates within the Zacks Financial - Investment Management industry, where competitor Invesco reported a 4.3% gain over the past month and revenues of $1.19 billion, reflecting a year-over-year change of +7.4% [15].