Artisan Partners (APAM) Q1 Earnings Miss Estimates, AUM Rises

Core Viewpoint - Artisan Partners Asset Management Inc. reported a mixed performance in Q1 2024, with adjusted net income per share of 76 cents, missing estimates, but showing an 18.7% year-over-year increase in net income attributable to the company [1][2]. Revenue and Expenses - Revenues for the first quarter reached $264.4 million, a 12.7% increase year-over-year, but fell short of the Zacks Consensus Estimate of $270.2 million [2]. - Management fees from Artisan Funds & Artisan Global Funds rose 14.4% year-over-year to $165.5 million, while fees from Separate accounts increased by 10.1% to $98.9 million [2]. - Total operating expenses were $186.7 million, up 12.3% year-over-year, driven by increases across all components except operating costs [2]. - Operating income improved to $77.7 million, reflecting a 13.8% year-over-year growth [2]. Assets Under Management (AUM) - As of March 31, 2024, the ending AUM was $160.4 billion, a 6.8% increase from the previous quarter, primarily due to investment returns, despite net client cash outflows [3]. - The average AUM for the quarter was $154.1 billion, up 9.8% from the prior quarter [3]. Balance Sheet Position - Cash and cash equivalents increased to $184.2 million from $141 million as of December 31, 2023 [4]. - The debt leverage ratio was reported at 0.5X as of March 31, 2024 [4]. Dividend Update - The board declared a variable first-quarter dividend of 61 cents per share of Class A common stock, payable on May 31 to shareholders of record as of May 17, 2024 [5]. Industry Performance - BlackRock, Inc. reported adjusted earnings of $9.81 per share, exceeding estimates and reflecting a 24% year-over-year increase, driven by revenue growth and higher non-operating income [7]. - Invesco's adjusted earnings of 33 cents per share fell short of estimates, declining 13.2% year-over-year, impacted by reduced revenues and higher expenses, although AUM saw an increase due to decent inflows [7].