AllianceBernstein shares rise nearly 4% as Q3 earnings beat expectations

NEW YORK - On Thursday, AllianceBernstein Holding L.P. (NYSE:AB) reported third-quarter earnings that exceeded analyst expectations, driven by strong performance in its tax-exempt and private alternative strategies.

The investment management firm’s shares rose 3.84% in pre-market trading after the results.

The company reported adjusted earnings per unit of $0.86, beating the analyst consensus estimate of $0.85. Revenue reached $1.14 billion, significantly outpacing the consensus estimate of $897.08 million. Compared to the same period last year, revenue increased 4.8% while adjusted operating income jumped 14.5% to $302.4 million.

AllianceBernstein’s adjusted operating margin expanded by 290 basis points YoY to 34.2%. The firm’s assets under management rose to $860.1 billion, up 6.7% from $805.9 billion in the third quarter of 2024.

"AllianceBernstein’s strong financial and operational results in the third quarter reflect our focused execution on strategic objectives, including forming new partnerships and enhancing our capabilities to better serve our clients," said Seth Bernstein, President and CEO of AllianceBernstein.

The company reported net outflows of $2.3 billion for the quarter. However, excluding $4.0 billion outflows related to the pre-announced Equitable-RGA reinsurance transaction, the firm achieved net inflows of $1.7 billion, with tax-exempt strategies bringing in $4.1 billion and alternatives/multi-asset strategies adding $3.2 billion.

The firm declared a cash distribution of $0.86 per unit, representing an 11.7% increase from the $0.77 distribution in the same quarter last year.

"Our investment teams excel in combining tactical insights with a disciplined, long-term strategy to curate high-quality investment options for our clients," Bernstein added.

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