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Investing.com -- Cohen & Steers, Inc. (NYSE:CNS) reported third-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $0.81, surpassing the consensus estimate of $0.78. The investment management firm also posted revenue of $141.72 million, beating analyst projections of $139.13 million.
The company’s shares rose 2.2% in after-hours trading on Thursday following the earnings announcement, reflecting investor satisfaction with the results that topped Wall Street forecasts.
Total revenue increased 4.1% from the previous quarter, primarily driven by higher average assets under management (AUM) and an additional day in the quarter. The company ended the period with $90.9 billion in AUM, up 2.2% from $88.9 billion at the end of June, benefiting from net inflows of $233 million and market appreciation of $2.4 billion.
Operating margin improved significantly to 34.5%, or 36.1% on an adjusted basis, representing a 270 basis point increase from the second quarter’s 31.8%. This margin expansion came as revenue growth outpaced expenses, which remained essentially flat quarter-over-quarter.
"Our third quarter results demonstrate the strength of our investment strategies and our ability to attract new assets while maintaining disciplined expense management," said a company executive. "The improvement in our operating margin reflects our focus on operational efficiency."
The company saw growth across all investment vehicles, with open-end funds increasing 3.4% to $44.4 billion, institutional accounts rising 0.9% to $34.7 billion, and closed-end funds growing 1.5% to $11.8 billion compared to the previous quarter.
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