Invesco Increases Sales but Misses Estimates on Earnings

Invesco (NYSE: IVZ  ) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Invesco met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share dropped significantly.

Gross margins increased, operating margins shrank, net margins dropped.

Revenue details
Invesco notched revenue of $1.11 billion. The nine analysts polled by S&P Capital IQ looked for revenue of $1.11 billion on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $997.1 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.45. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.47 per share. GAAP EPS of $0.35 for Q4 were 20% lower than the prior-year quarter's $0.44 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 67.9%, 2,990 basis points better than the prior-year quarter. Operating margin was 20.6%, 230 basis points worse than the prior-year quarter. Net margin was 14.5%, 580 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.12 billion. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $4.66 billion. The average EPS estimate is $2.06.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 85 members out of 102 rating the stock outperform, and 17 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give Invesco a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Invesco is outperform, with an average price target of $29.17.

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