Affiliated Managers Group Inc. AMG is scheduled to announce first-quarter 2026 results on May 1, before the opening bell. Its quarterly earnings and revenues are expected to have improved year over year.
In the last reported quarter, AMG’s earnings beat the Zacks Consensus Estimate. Results benefited from a rise in assets under management (AUM) and revenues. A rise in expenses was the undermining factor.
The company boasts an impressive earnings surprise history. Its earnings surpassed the consensus estimate in three of the trailing four quarters and matched once, with the average beat being 4.35%.
Affiliated Managers Group, Inc. Price and EPS Surprise
Affiliated Managers Group, Inc. price-eps-surprise | Affiliated Managers Group, Inc. Quote
AMG’s Noteworthy Development in Q1
In February, Affiliated Managers announced the acquisition of a minority equity stake in HighBrook Investors, a real estate investment manager specializing in thematic value-add opportunities in the United States and Europe.
HighBrook has committed more than $2.3 billion of equity across more than 80 investments. The firm’s gross asset value totaled approximately $5.7 billion through its flagship fund series and co-investment vehicles.
Key AMG Management Expectations for Q1
Management expects adjusted EBITDA in the $310-$330 million range based on the current AUM levels and net performance fees of $40-$60 million. This includes the impact of the 2025 new investments and affiliate sales and the partial impact of additional investment in Garda and new investment in HighBrook.
Interest expenses are expected to be $37 million. Controlling interest depreciation is likely to be $1 million.
Net income (controlling interest) is expected to be between $174 million and $189 million. The company’s share of reported amortization and impairments is anticipated to be $30 million.
Intangible-related deferred taxes are projected to be $14 million. Other economic items, which now include realized gains, are anticipated to be roughly $1 million.
Earnings Whispers for Affiliated Managers
Our quantitative model predicts an earnings beat for Affiliated Managers this time. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Affiliated Managers is +8.76%.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMG’s Earnings & Sales Projections for Q1
The Zacks Consensus Estimate for AMG’s earnings is pegged at $7.38, which has moved marginally lower over the past month. The figure indicates a 41.9% jump from the year-ago quarter.
The company’s economic net income (controlling interest) is projected in the range of $219-$233 million. Economic earnings per share are expected to be between $7.98 and $8.52.
The consensus estimate for sales is pegged at $543 million, indicating 9.4% growth.
Q1 Performance of Affiliated Managers’ Peers
Franklin Resources Inc. BEN reported second-quarter fiscal 2026 (ended March 31) adjusted earnings of 71 cents per share, which surpassed the Zacks Consensus Estimate of 55 cents. Also, the bottom line compared favorably with 47 cents reported in the year-ago quarter.
BEN’s results benefited from higher revenues. A slight decline in AUM and elevated expenses remained headwinds.
Invesco’s IVZ first-quarter 2026 adjusted earnings of 57 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line increased 29.5% from the prior-year quarter.
The results primarily benefited from an increase in adjusted revenues and growth in AUM balance. An increase in adjusted expenses was a headwind for IVZ.
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This article originally published on Zacks Investment Research (zacks.com).