Invesco Ltd. (NYSE:IVZ) reported its Q4 results, with EPS of $0.39 coming in better than the Street estimate of $0.36. Revenue was $1.18 billion, beating the Street estimate of $1.08 billion.
Key issues are the likelihood of further declines in at least the near term for the firm’s investment management net revenue yield given outflows in higher revenue-yielding products and further pressure on operating margins given operating costs may stay elevated in at least the near term.
Longer-term, management expressed confidence for net flows to turn positive along with operating metrics once client risk appetite improves and markets rebound more convincingly.