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