AllianceBernstein reports Q3 adjusted EPS 86c, consensus 85c

Reports Q3 revenue $1.14B, consensus $897.6M. “AllianceBernstein’s (AB) 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. “Excluding $4.0 billion outflows related to the pre-announced Equitable-RGA reinsurance transaction, third quarter inflows netted $1.7 billion, driven by sustained organic growth in our tax-exempt and private alternative strategies. Inflows into our market-leading tax-exempt franchise accelerated to $4.1 billion inflows, driven by retail and private wealth gains. Additionally, institutional deployments in our private alternative strategies drove $3.2 billion alternatives/multi-asset inflows, bringing our private markets AUM to nearly $80 billion and moving us closer to our $90 to $100 billion target by 2027. While active equities extended a persistent trend with $6.4 billion outflows, taxable fixed income outflows of $4.2 billion were largely episodic in the quarter. Excluding the above-mentioned reinsurance transaction, firmwide taxable net flows were roughly flat, with modest inflows across retail and private wealth. Compared to prior year, average AUM and advisory base fees grew 7% and 5%, respectively. Adjusted operating income increased 15% and adjusted operating margin of 34.2% expanded by 290 bps. Adjusted earnings per Unit and distributions to Unitholders rose 12%.”