The 10-second takeaway
For the quarter ended June 30 (Q2), Invesco met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased significantly.
Margins increased across the board.
Invesco booked revenue of $1.14 billion. The nine analysts polled by S&P Capital IQ wanted to see revenue of $1.15 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $1.01 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.50. The 21 earnings estimates compiled by S&P Capital IQ anticipated $0.52 per share. Non-GAAP EPS of $0.50 for Q2 were 22% higher than the prior-year quarter's $0.41 per share. GAAP EPS of $0.45 for Q2 were 32% higher than the prior-year quarter's $0.34 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 39.2%, 80 basis points better than the prior-year quarter. Operating margin was 24.3%, 410 basis points better than the prior-year quarter. Net margin was 17.8%, 250 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.15 billion. On the bottom line, the average EPS estimate is $0.53.
Next year's average estimate for revenue is $4.65 billion. The average EPS estimate is $2.11.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 88 members out of 105 rating the stock outperform, and 17 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Invesco a green thumbs-up, and four 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 $36.00.
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