## Artisan Partners Asset (APAM) Earnings Preview: What to Expect on October 29th
Investors are eagerly awaiting Artisan Partners Asset Management Inc.’s (APAM) upcoming quarterly earnings release scheduled for Tuesday, October 29th. As the company prepares to unveil its financial performance, analysts are predicting an earnings per share (EPS) of $0.88. However, investors are hoping for more than just meeting estimates; they’re looking for signs of exceeding expectations and positive guidance for the upcoming quarter.
It’s crucial for investors, especially newcomers, to remember that stock prices are often driven by future projections rather than solely by past performance. Therefore, APAM’s guidance and outlook for the coming quarter will be closely scrutinized.
### Past Performance: A Mixed Bag
Looking back at APAM’s recent earnings history reveals a mixed bag of results. In the previous quarter, the company missed EPS estimates by $0.02, leading to a 2.75% drop in share price on the following day. Here’s a breakdown of APAM’s past performance and the corresponding price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change % |
|—|—|—|—|
| Q2 2024 | 0.84 | 0.82 | -3.0% |
| Q1 2024 | 0.77 | 0.76 | -3.0% |
| Q4 2023 | 0.74 | 0.78 | -1.0% |
| Q3 2023 | 0.75 | 0.75 | 2.0% |
Despite the recent miss, shares of APAM were trading at $43.65 as of October 25th, showcasing a positive 34.15% increase over the past 52 weeks. This upward trend suggests long-term shareholders may be optimistic going into this earnings release.
### Analyst Sentiments and Peer Comparisons
To gain a deeper understanding of market expectations and investor sentiment, it’s essential to examine the perspectives of analysts. Currently, APAM holds a consensus rating of
Sell
from the sole analyst covering the stock. The average one-year price target stands at $39.5, implying a potential 9.51% downside.However, a holistic view requires considering how APAM compares to its peers within the industry. Let’s analyze the analyst ratings and average one-year price targets for three key players: Federated Hermes, Victory Capital Holdings, and Patria Investments.
*
Federated Hermes:
Consensus rating:Neutral
. Average 1-year price target: $39.17, indicating a potential 10.26% downside.*
Victory Capital Holdings:
Consensus rating:Neutral
. Average 1-year price target: $57.64, implying a potential 32.05% upside.*
Patria Investments:
Consensus rating:Buy
. Average 1-year price target: $14.0, indicating a potential 67.93% downside.### Peer Metrics Summary
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Artisan Partners Asset | Sell | 11.49% | $124.03M | 15.76% |
| Federated Hermes | Neutral | 1.46% | $271.83M | 8.33% |
| Victory Capital Holdings | Neutral | 7.54% | $161.90M | 6.75% |
| Patria Investments | Buy | -2.85% | $45.40M | 0.16% |
Key Takeaways:
* Artisan Partners Asset holds the highest Gross Profit and Return on Equity among its peers.
* APAM sits in the middle for Revenue Growth.
* Notably, the company with the highest Revenue Growth exhibits the lowest Gross Profit and Return on Equity, while the company with the lowest Revenue Growth has the highest Gross Profit and Return on Equity.
### A Closer Look at Artisan Partners Asset
Artisan Partners Asset Management Inc. is a globally recognized investment management firm that caters to a diverse clientele worldwide. The company boasts a range of investment strategies, each expertly managed by dedicated investment teams. Its primary service offerings include separate accounts and mutual funds, primarily targeting institutional investors. APAM’s investment portfolio encompasses long-only equity strategies across various market capitalization segments and investing styles, spanning both U.S. and international markets. In addition to its equity focus, clients can also invest in a fixed-income strategy. These strategies are distributed through specialized channels, reaching both retail and institutional investors.
### Financial Overview
Market Capitalization Analysis:
APAM’s market capitalization falls below industry averages, suggesting a smaller scale. This could be attributed to factors like growth expectations or operational capacity.Positive Revenue Trend:
Analyzing APAM’s financials over the past three months reveals a positive trend. The company achieved a substantial revenue growth rate of 11.49% as of June 30, 2024, indicating significant growth in top-line earnings. This growth rate surpasses the average among its peers in the Financials sector.Net Margin:
APAM’s net margin currently sits below industry benchmarks, signifying potential challenges in achieving strong profitability. With a net margin of 19.25%, the company may need to address concerns related to effective cost control.Return on Equity (ROE):
APAM demonstrates financial strength through its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 15.76%, the company showcases efficient utilization of equity capital and robust financial health.Return on Assets (ROA):
APAM’s ROA surpasses industry benchmarks, reaching 3.45%. This indicates efficient asset management and strong financial health.Debt Management:
APAM adopts a balanced approach to debt management with a debt-to-equity ratio below industry norms, standing at 0.9.To stay informed about all upcoming earnings releases for Artisan Partners Asset, visit our earnings calendar on our website. This detailed information will provide you with comprehensive insight into the company’s financial performance and market positioning.
