ATLANTA - Invesco Ltd. (NYSE: IVZ) has reported its second-quarter financial performance, delivering an adjusted EPS of $0.43, which surpassed the analyst expectations by $0.03. The revenue for the quarter was in line with the consensus estimate, standing at $1.09 billion.
The asset management firm experienced a notable year-over-year growth, with ending assets under management (AUM) climbing to a record $1.7 trillion, marking an 11.5% increase compared to the same period last year. This growth was primarily fueled by a substantial $16.7 billion in net long-term inflows, largely attributed to the company's ETFs and Index, APAC Managed, Private Markets, and Fundamental Fixed Income products.
Invesco's President and CEO, Andrew Schlossberg, commented on the results, emphasizing the nearly 6% outsized annualized organic growth led by the global ETF platform and strong net long-term inflows in the Asia Pacific.
Schlossberg highlighted the success in executing strategic priorities and focusing on significant market opportunities. He also mentioned the company's plans to initiate share buybacks starting in the third quarter as part of their commitment to maintaining financial discipline and strengthening the balance sheet.
While the company's operating revenues saw a slight increase of 0.5% from the first quarter and 2.8% from the same quarter last year, the adjusted operating margin improved significantly to 30.9%. The increase in net revenues by 3.1% from the first quarter, however, was slightly offset by a 0.4% decrease when compared to the second quarter of the previous year.
Invesco's financial discipline was further demonstrated by their net debt reduction, which now stands at a mere $11.6 million, showcasing a strong financial position with a zero balance on the credit facility and substantial cash reserves.
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