Cohen & Steers advances as strong inflows support Q3 growth
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Cohen & Steers (CNS) trades marginally higher, up 2% on Friday pre-market hours, as the company reported mixed Q3 numbers, Q3 revenue was up 11% to $157.43M, beating analyst estimates by $1.87M.
AUM declined 4.2% sequentially to $95.94B, despite $1.55B in net inflows, as market depreciation and distributions weighed on assets. The company recorded its fifth consecutive quarter of organic growth.
Net income increased 1.3% Y/Y, while adjusted net income rose 11.4%. GAAP diluted EPS was flat Y/Y, and adjusted operating margin improved to 37.2%. Adjusted EPS of $0.89 missed estimates by $0.02.
CEO Joseph Harvey said demand for real assets was broadening as investors increasingly recognized their role in diversified portfolios. The wealth channel led inflows, supported by momentum across mutual funds, ETFs and other investment vehicles. The company launched its seventh active ETF, the Cohen & Steers Real Assets Active ETF, in August.
"Cohen & Steers is downgraded from Buy to Hold due to limited catalysts in a high interest rate environment and premium valuation." said an analyst at Seeking Alpha.
The stock currently gets a Quant rating of Hold with the highest factor grades assigned to profitability.
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