Capital Com MENA Securities Trading LLC is regulated by the Capital Market Authority.
Open platformOpen platform

Silvercrest Asset Management Q3 revenue, adjusted profit beat estimates despite lower assets

By Reuters News


Overview

  • US asset manager's Q3 revenue rose 4.5% yr/yr to $32.7 mln

  • Q3 adjusted EPS of $0.16 beat analyst expectations

  • Discretionary AUM fell 3.6% sequentially, mainly due to weaker markets


Outlook

  • Company plans to revise AUM reporting after Q1 2027, likely eliminating non-discretionary AUM category without revenue impact

  • Company expects administrative and legal costs tied to global expansion initiatives to decline and related operations to begin contributing revenue

  • Company expects compensation ratio to remain elevated as growth investments mature


Result Drivers

  • HIGHER FEES - Co said Q3 revenue growth was mainly due to an increase in average annual management fee

  • WEAKER MARKETS - Discretionary AUM fell $939 mln sequentially to $23.8 bln, mainly due to $811 mln of market depreciation

  • CLIENT ACTIVITY - Co added $182 mln in new client accounts and received a $373 mln follow-on investment in its global value equity strategy


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$32.71 mln

$31.85 mln (2 Analysts)

Q3 Adjusted EPS

Beat

$0.16

$0.11 (2 Analysts)

Q3 Adjusted Net Income

Beat

$1.91 mln

$1.12 mln (2 Analysts)

Q3 Consolidated Net Income

$1.20 mln

Q3 Adjusted EBITDA

Beat

$4.40 mln

$3.25 mln (2 Analysts)

Q3 Adjusted EBITDA Margin

13.50%


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the investment management & fund operators peer group is "buy."

  • Wall Street's median 12-month price target for Silvercrest Asset Management Group Inc is $16.50, about 58% above its October 28 closing price of $10.44

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Oct 29 - Ares Management Q3 revenue beats estimates on increased investment activity

  • Oct 27 - LPL Financial Q3 adjusted EPS beats estimates as client assets rise

  • Oct 29 - Blue Owl third-quarter profit beats estimates, AUM hits record $330 billion


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.