AlTi Global (NASDAQ:ALTI) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

AlTi Global (NASDAQ:ALTI) posted its earnings results on Monday. The basic materials company reported $0.01 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.01), FiscalAI reports. The company had revenue of $57.90 million during the quarter, compared to analyst estimates of $65.80 million. AlTi Global had a negative net margin of 40.86% and a negative return on equity of 1.61%.

Here are the key takeaways from AlTi Global’s conference call:

• AUM and recurring fees grew: Assets under management reached $51.6 billion, up 5% year over year, primarily on strong investment performance. Recurring management and advisory fees rose 7%, although total revenue increased only 1% to $58 million.
• Expense reductions improved results: Operating expenses fell 25% year over year to $64 million, and adjusted EBITDA increased 1% year over year to more than $6 million. Management said further savings are expected, while noting some of the expense decline reflected the absence of prior-year costs.
• Outflows and an upcoming investment writedown weigh on the outlook: Net wealth management outflows were about $250 million, as reductions in lower-fee legacy accounts exceeded new client funding. AlTi expects a further $20 million–$23 million non-cash unrealized loss in Q4 on its Zebedee stake.
• New credit facility supports targeted growth: AlTi secured an $85 million facility, with $28 million drawn, and plans to use available capital in part for advisor and team lift-outs that expand existing offices and support growth. The revolver remains undrawn, and the delayed-draw term loan is intended for future opportunities.

AlTi Global Stock Up 5.6%

ALTI opened at $2.47 on Tuesday. AlTi Global has a 12-month low of $2.26 and a 12-month high of $5.45. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 0.02. The firm’s fifty day moving average price is $2.89 and its 200 day moving average price is $3.57.

Analysts Set New Price Targets

Several equities analysts recently commented on ALTI shares. Weiss Ratings reissued a “sell (d-)” rating on shares of AlTi Global in a research report on Thursday, October 15th. Wall Street Zen raised shares of AlTi Global from a “sell” rating to a “hold” rating in a research report on Saturday, September 19th. Finally, Zacks Research raised shares of AlTi Global from a “strong sell” rating to a “hold” rating in a research report on Monday, October 19th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce”.

AlTi Global News Summary

Here are the key news stories impacting AlTi Global this week:

• Positive Sentiment: AlTi secured an $85 million credit facility to fund growth, providing additional financing capacity. The company also reported operating expenses down 25% year over year. AlTi Global: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Third-quarter results fell short of estimates: revenue was $57.9 million versus $65.8 million expected, and Zacks reported a loss of $0.05 per share versus an expected loss of $0.02. Coverage also pointed to a sharp decline in incentive fees as a driver of the miss. AlTi Global Reports Q3 Loss, Lags Revenue Estimates
• Negative Sentiment: AlTi expects a $20 million–$23 million noncash unrealized loss in Q4 related to its Zebedee stake. Though noncash, the expected valuation hit could weigh on reported results. AlTi Outlines Credit Agreement and Expected Q4 Loss

AlTi Global Company Profile

AlTi Global, Inc is a global independent wealth manager that provides investment and advisory services to entrepreneurs, families, foundations and institutions. The company helps clients manage and preserve wealth through customized portfolio management, financial planning, investment advisory and family-office solutions.

Its services include traditional and alternative investment strategies, private markets and impact investing, as well as advice on governance, philanthropy, estate planning and other complex financial matters.