The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Invesco met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly, and GAAP earnings per share dropped.
Margins increased across the board.
Invesco chalked up revenue of $1.02 billion. The six analysts polled by S&P Capital IQ expected revenue of $1.02 billion. Sales were 3.1% lower than the prior-year quarter's $1.03 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.40. The six earnings estimates compiled by S&P Capital IQ anticipated $0.39 per share on the same basis. GAAP EPS of $0.36 for Q4 were 17% higher than the prior-year quarter's $0.38 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 69.7%, 2,830 basis points better than the prior-year quarter. Operating margin was 21.8%, 80 basis points better than the prior-year quarter. Net margin was 20.3%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.03 billion. On the bottom line, the average EPS estimate is $0.43.
Next year's average estimate for revenue is $4.29 billion. The average EPS estimate is $1.80.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 92 members out of 108 rating the stock outperform, and 16 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 36 give Invesco a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Invesco is outperform, with an average price target of $24.63.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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