AllianceBernstein (NYSE:AB) Issues Earnings Results, Misses Estimates By $0.01 EPS

AllianceBernstein (NYSE:AB) posted its quarterly earnings results on Tuesday. The asset manager reported $0.82 EPS for the quarter, missing the consensus estimate of $0.83 by ($0.01), Zacks reports. The business had revenue of $887.55 million during the quarter, compared to analysts’ expectations of $907.67 million. AllianceBernstein had a net margin of 6.69% and a return on equity of 23.11%. AllianceBernstein’s revenue for the quarter was up 7.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.76 earnings per share.

Here are the key takeaways from AllianceBernstein’s conference call:

• Record growth and return to positive organic flows: Second-quarter AUM exceeded $905 billion, net flows were nearly $800 million, and gross sales reached a five-year high of $31 billion. Growth was led by insurance, fixed income, alternatives, private wealth, SMAs, retirement and active ETFs.
• Private markets target achieved ahead of schedule: Private-market AUM reached $91 billion, surpassing the low end of AB’s $90 billion-$100 billion 2027 target more than a year early. Including approximately $12 billion of commercial mortgage loans onboarded in July, AUM now exceeds the target’s upper end.
• Improved earnings outlook and operating leverage: Adjusted earnings per unit rose 8% year over year to $0.82, while the adjusted operating margin expanded to 33%. AB raised its 2026 performance-fee outlook to $115 million-$135 million and lowered its non-compensation expense and tax-rate guidance.
• Equitable/Corebridge transaction could materially expand scale: Management expects to add at least $100 billion of Corebridge assets over time, with 20%-30% potentially onboarding in 2027 and further assets in 2028. Executives expect high incremental margins because much of the infrastructure is already in place, although fee rates may be lower for core fixed-income assets.
• Equity performance and certain flows remain weak: Only 23% of equity AUM outperformed over the past year, while active-equity outflows were nearly $11 billion and taxable fixed-income outflows exceeded $4 billion. Management attributed much of the pressure to retail redemptions in Asia-Pacific and investor preference for strong local equity markets.

AllianceBernstein Price Performance

Shares of NYSE:AB opened at $37.44 on Wednesday. AllianceBernstein has a 1 year low of $34.92 and a 1 year high of $44.11. The firm has a market capitalization of $3.50 billion, a price-to-earnings ratio of 11.52, a price-to-earnings-growth ratio of 1.21 and a beta of 0.81. The business’s 50 day moving average price is $36.87 and its 200-day moving average price is $38.33.

AllianceBernstein Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 27th. Stockholders of record on Wednesday, August 12th will be paid a dividend of $0.82 per share. This represents a $3.28 annualized dividend and a dividend yield of 8.8%. The ex-dividend date of this dividend is Wednesday, August 12th. AllianceBernstein’s dividend payout ratio is presently 102.15%.

Analyst Ratings Changes

AB has been the subject of several analyst reports. Weiss Ratings cut AllianceBernstein from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, June 29th. TD Cowen raised their target price on AllianceBernstein from $37.00 to $38.00 and gave the stock a “hold” rating in a report on Monday, July 20th. Barclays reduced their price target on AllianceBernstein from $40.00 to $39.00 and set an “equal weight” rating for the company in a research report on Wednesday, April 29th. Evercore set a $39.00 price target on AllianceBernstein in a report on Friday, July 10th. Finally, Sanford C. Bernstein restated an “outperform” rating on shares of AllianceBernstein in a research report on Friday, July 10th. Two research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $39.50.

More AllianceBernstein News

Here are the key news stories impacting AllianceBernstein this week:

• Positive Sentiment: Ending assets under management reached a record $905.5 billion, up 9.2% year over year and 8.0% sequentially. Net flows also improved to $0.8 billion, compared with $7.1 billion of outflows in the first quarter. AllianceBernstein Q2 results
• Positive Sentiment: GAAP operating income rose 30.2% year over year to $289.2 million, while GAAP net income per unit increased to $0.77 from $0.64 a year earlier. Adjusted net income per unit rose to $0.82 from $0.76. AllianceBernstein second-quarter results
• Positive Sentiment: AllianceBernstein declared a quarterly cash distribution of $0.82 per unit, payable August 27 to holders of record on August 12. The distribution represents an indicated yield of approximately 8.8%, supporting the stock’s income appeal.
• Neutral Sentiment: Revenue increased 7.5% year over year, and retail and institutional channels recorded net inflows. However, private wealth experienced $0.7 billion of net outflows, indicating uneven demand across business lines. AllianceBernstein earnings call highlights
• Negative Sentiment: Adjusted EPS of $0.82 narrowly missed the $0.83 consensus estimate, while revenue of $887.55 million was below the approximately $907.67 million forecast. GAAP earnings also declined from $0.92 per unit in the prior quarter. AllianceBernstein earnings report

Institutional Investors Weigh In On AllianceBernstein

Several institutional investors and hedge funds have recently added to or reduced their stakes in AB. Morgan Stanley raised its position in AllianceBernstein by 79.2% during the fourth quarter. Morgan Stanley now owns 1,412,548 shares of the asset manager’s stock worth $54,355,000 after acquiring an additional 624,270 shares during the period. Goldman Sachs Group Inc. grew its position in shares of AllianceBernstein by 51.8% in the first quarter. Goldman Sachs Group Inc. now owns 916,574 shares of the asset manager’s stock valued at $35,114,000 after purchasing an additional 312,878 shares during the period. Focus Partners Wealth increased its stake in shares of AllianceBernstein by 1,154.2% during the third quarter. Focus Partners Wealth now owns 336,502 shares of the asset manager’s stock worth $12,861,000 after purchasing an additional 309,673 shares in the last quarter. HRT Financial LP increased its stake in shares of AllianceBernstein by 438.1% during the second quarter. HRT Financial LP now owns 108,143 shares of the asset manager’s stock worth $4,415,000 after purchasing an additional 88,045 shares in the last quarter. Finally, Lavaca Capital LLC acquired a new position in shares of AllianceBernstein during the 3rd quarter worth about $1,531,000. Hedge funds and other institutional investors own 19.25% of the company’s stock.

About AllianceBernstein

AllianceBernstein is a global investment management firm that offers a broad range of research-driven strategies across equities, fixed income, multi-asset solutions and alternative investments. The firm provides active and quantitative portfolio management, drawing on in-house research capabilities to serve the needs of institutional clients, private wealth investors and intermediaries. Its product lineup encompasses mutual funds, separately managed accounts and customized investment vehicles designed to meet diverse risk-return objectives.

The firm’s roots date back to 1967 with the founding of Sanford C.