Artisan Partners Asset Management (APAM) exceeds second quarter earnings and revenue estimates

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Artisan Partners Asset Management (APAM) posted quarterly profit of $ 1.28 per share, beating Zacks’ consensus estimate of $ 1.21 per share. This compares to a profit of $ 0.71 per share a year ago. These figures are corrected for non-recurring items.

This quarterly report represents a profit surprise of 5.79%. A quarter ago, this investment management firm was expected to post a profit of $ 1.10 per share when it actually produced a profit of $ 1.13, offering a surprise of 2 , 73%.

In the past four quarters, the company has beaten consensus EPS estimates four times.

Artisan Partners, which is part of the Zacks Financial – Investment Management business, reported revenues of $ 304.9 million for the quarter ended June 2021, beating Zacks’ consensus estimate by 0.83%. This compares to a year ago revenue of $ 203 million. The company has beaten consensus revenue estimates four times in the past four quarters.

The sustainability of the immediate stock price movement based on recently released numbers and future earnings expectations will depend primarily on management feedback on the profit call.

Artisan Partners stock has lost around 3.4% year-to-date against a 16.8% gain for the S&P 500.

What is the next step for the artisan partners?

While Artisan Partners has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but a reliable metric that can help investors solve this problem is the company’s earnings outlook. This includes not only the current consensus earnings expectations for the coming quarter (s), but also how those expectations have changed in recent times.

Empirical research shows a strong correlation between short-term stock market movements and trends in earnings estimate revisions. Investors can follow these revisions on their own or rely on a proven scoring tool like Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Prior to this publication of results, the trend in revisions to estimates for Artisan Partners was favorable. While the magnitude and direction of estimate revisions may change as a result of the company’s just released earnings report, the current status translates to a Zacks Rank # 2 (Buy) for the stock. Thus, stocks are expected to outperform the market in the near future. You can see the full list of Zacks # 1 Rank (Strong Buy) stocks today here.

It will be interesting to see how the estimates for the next quarters and the current year evolve in the days to come. The current consensus estimate of EPS is $ 1.27 out of $ 316.9 million in revenue for the coming quarter and $ 4.91 out of $ 1.23 billion in revenue for the current year.

Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the stock. In terms of Zacks industry ranking, Financial – Investment Management is currently in the top 21% of Zacks 250+ industries. Our research shows that the top 50% of industries ranked by Zacks outperform the bottom 50% by a factor of more than 2 to 1.

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