Asset manager AllianceBernstein's Q3 profit beats estimates as outflows drop
AllianceBernstein reported Q3 revenue growth of 4.8% year-over-year, surpassing analyst expectations. Adjusted EPS rose 11.7% year-over-year, with net outflows improving to $2.3 billion from $6.7 billion in Q2. The company aims for private markets AUM of $90 to $100 billion by 2027 and anticipates growth in institutional pipeline AUM. Tax-exempt inflows reached $4.1 billion, while private alternatives saw $3.2 billion in inflows. The average analyst rating is "hold," with a median 12-month price target of $40.50, slightly above the recent closing price of $40.07.
)
Overview
- AllianceBernstein Q3 revenue beats analyst expectations, growing 4.8% yr/yr
- Adjusted EPS for Q3 beats consensus, rising 11.7% yr/yr
- Company reports $2.3 bln net outflows, improved from Q2’s $6.7 bln outflows
Outlook
- AllianceBernstein targets private markets AUM of $90 to $100 bln by 2027
- Company expects institutional pipeline AUM to grow in coming quarters from $11.8 bln currently
Result Drivers
- TAX-EXEMPT INFLOWS - Inflows into tax-exempt strategies accelerated to $4.1 bln, driven by retail and private wealth gains; Retail channel shows sequential improvement in net flows
- PRIVATE ALTERNATIVES - Institutional deployments in private alternative strategies drove $3.2 bln inflows
- REINSURANCE IMPACT - $4.0 bln outflows related to Equitable-RGA reinsurance transaction affected results
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q3 Beat $1.13 $887.60
Revenue bln mln (2
Analysts
)
Q3 Beat $0.86 $0.83 (6
Adjusted Analysts
EPS )
Analyst Coverage
- The current average analyst rating on the shares is “hold” and the breakdown of recommendations is 2 “strong buy” or “buy”, 5 “hold” and no “sell” or “strong sell”
- The average consensus recommendation for the investment management & fund operators peer group is “buy.”
- Wall Street’s median 12-month price target for AllianceBernstein Holding LP is $40.50, about 1.1% above its October 21 closing price of $40.07
- The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
