IVZ Tops Q1 Earnings on Revenue Growth, Partners With Barings, Stock Up

Core Viewpoint - Invesco reported strong first-quarter 2025 adjusted earnings, exceeding estimates and showing significant year-over-year growth, alongside a strategic partnership aimed at enhancing its private credit offerings [1][6]. Financial Performance - Adjusted earnings for Q1 2025 were 44 cents per share, surpassing the Zacks Consensus Estimate of 39 cents, and reflecting a 33.3% increase from the previous year [1]. - Adjusted net revenues reached $1.11 billion, up 5.3$1.10 billion [3]. - Net income attributable to common shareholders was $171.1 million or 38 cents per share, compared to$141.5 million or 31 cents per share in the prior-year quarter [2]. Assets Under Management (AUM) - As of March 31, 2025, AUM was $1.84 trillion, representing an 11$1.88 trillion, up 16.6% [4]. - The company experienced long-term net inflows of $17.6 billion during the reported quarter [4]. Operating Expenses - Adjusted operating expenses were$759.2 million, showing a slight year-over-year increase [3]. - The adjusted operating margin improved to 31.5%, up from 28.2% a year ago [3]. Strategic Initiatives - Invesco announced a collaboration with Barings, MassMutual's global asset management subsidiary, to enhance private credit solutions [6]. - MassMutual plans to support this initiative with an initial investment of $650 million [7]. - Invesco intends to repurchase approximately$1 billion of its Series A preferred stock, which is expected to be accretive to earnings starting in the second half of 2025 [8]. Balance Sheet - As of March 31, 2025, cash and cash equivalents were $821.7 million, down from$986.5 million a year earlier, while long-term debt stood at $964.8 million [5].