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Invesco (NYSE:IVZ) stock slid 4.5% in Tuesday premarket trading after net revenue unexpectedly fell in the last quarter of 2023 even as net long-term inflows climbed and market gains bolstered assets under management.
Q4 adjusted EPS of $0.47, topping the $0.40 consensus, rose from $0.35 in Q3 and $0.39 in Q4 2022.
Net long-term inflows of $6.7B increased from $2.6B in the previous quarter. Retail net long-term inflows were $4.6B, while institutional net long-term inflows were $2.1B.
Net revenue of $1.05B, trailing the $1.12B consensus, declined from $1.10B in Q3 and $1.11B in Q4 2022.
Total operating revenue of $1.41B slipped from $1.44B in the previous quarter and $1.44B in the year-ago period.
Adjusted operating expenses of $771M declined from $789M in the previous quarter and edged up from $769M in the year-ago period.
Ending assets under management of $1.59T increased 6.6% from $1.49T at Sept. 30, 2023.
Net market gains increased AUM by $86.9B in Q4, and foreign exchange rate movements added $11.0B. Inflows of $3.1B in non-management fee earning products were more than offset by $18.1B of outflows in money market funds during the quarter.
In Q4, the company recorded a $1.25B non-cash impairment of indefinite-lived intangible assets related to prior acquisitions of management contracts of U.S. retail mutual funds. Invesco's bottom line also included $22M of organizational change expense during the quarter.
Q4 GAAP EPS came to -$1.64 vs. $0.29 in Q3 and $0.41 in Q4 2022.
Earlier, Invesco non-GAAP EPS of $0.47 beats by $0.07; revenue of $1.05B misses by $70M