Invesco (IVZ) Q3 2024 earnings summary

Executive summary

• Achieved record AUM of $1.8 trillion, up 4.7%-5% sequentially and over 20% year-over-year, driven by $16.5 billion net long-term inflows, especially in ETFs, Index, and Fixed Income strategies.

• Adjusted diluted EPS was $0.44, up from $0.43 in the prior quarter, while GAAP EPS was $0.12, impacted by a one-time $147.6 million compensation expense.

• Achieved zero net debt, repurchased 1.5 million shares for $25 million, and maintained over $1 billion in cash.

• Positive organic growth and operating leverage in all regions, with margin improvement to 31.6% on an adjusted basis.

• Diversified global footprint, strong APAC presence, and leading ETF platform underpin growth.

Financial highlights

• Operating revenues rose to $1,515.4 million, up 2.2% sequentially and 5.1% year-over-year; adjusted operating income was $348.8 million.

• Adjusted operating margin improved to 31.6%, up 70 bps sequentially and 340 bps year-over-year.

• Net income attributable to Invesco Ltd. was $55.0 million, down from $131.4 million year-over-year due to the one-time compensation expense.

• Average AUM for the quarter was $1,742.0 billion, up from $1,528.7 billion in Q3 2023.

• Net revenue yield was 25.3 bps, reflecting asset mix shifts and fee compression in APAC.

Outlook and guidance

• Continued focus on profitable organic growth, expanding private markets, and leveraging technology.

• Plans to maintain regular share buybacks, targeting $25 million in the next quarter.

• Total payout ratio (dividends and buybacks) expected to approach 60% and continue into 2025.

• Alpha platform implementation costs to peak in 2025, with benefits expected from 2026.

• Cautions on forward-looking statements due to market, geopolitical, and regulatory risks.