16 days have passed by since the last earnings report for Invesco Ltd. (NYSE:IVZ) and the new quarterly results look set to arrive in 83 days. The shares of IVZ at the moment are trading at a volume of 4.53 million, which compares with its normal daily standard volume of 5.27 million shares. This has led to the shares of the company advancing by 0.78%, currently exchanging hands at $18.18 a share. IVZ stock has been up by $4 (-18.03%) ever since it reached its 52-week high of $22.18 back in April 25, 2019. It has progressed above its 50-day moving average of $16.53 and is up 8.09% over the past week. The stock has added 12.5% since the last one arrived so the question here is that will the upbeat trend in that time frame continue leading up to its next earnings release, or is the IVZ share price due for a correction?
Invesco Ltd. (IVZ) Forecasts And Latest Quarter Earnings
Ahead of their fiscal fourth-quarter to be released on Thursday, Jan 30, 2020, 16 analysts who are covering the company are estimating that it will record a profit of $0.66 per share, with analysts having different outlooks from $0.58 to $0.7. The current agreed outlook, when compared to the profit recorded last year, is at $0.44 a share, thus an increase of 50% is expected. The profit view for a complete financial year for Invesco Ltd. is expected to be around $2.55 in current year, a decline of nearly 4.94% from last year which was $2.43.
Let’s now look at their sales section, IVZ’s revenue is estimated to be $919.2M, a figure which is less than the $919.2M recorded for Q4 last year. Their sequential sales though are expected to fall by -29.07% from their Q3’s sales which were $1.72B. Their full-year outlook is pegged at $4.37B, implying that there would be an increase of 14.4% over the $3.82B they recorded last year in revenue. Invesco Ltd. is projected to get sales lifted by 10.76% in the next quarter, with a revenue target of $4.84B.
Analyzing The Earnings History Of Invesco Ltd. (NYSE:IVZ)
In the past few years, the IVZ stock has been known to miss the Wall Street’s earnings projection. The company missed 16% of the time, according to the data pulled on their earnings, was able to meet predictions on 2 occasions and topped expectations 8 times. Looking at the past trend, the price of Invesco Ltd. shares had risen following the release of their earnings in 21 of the last 39 quarters.
Looking back, here is how Invesco Ltd. (IVZ) stock reacted to earnings misses and beats. It gave investors reason to cast doubts with the price going down after 2 of the last four earnings reports. The shares of Invesco Ltd. recorded 7.8%, -2.64%, 1.86% and -2.47%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were 6.36%, -4.34%, 1.11% and -1.78%. Their post-earnings price movements have resulted in an average increase of 1.14% and an average increase of 0.34% in Invesco Ltd. on next day and 7th day, sequentially. IVZ’s one month stock performance led to its shares rising by 18.13% with a return of -16.22% witnessed over the last 52 weeks.
The lower number of analysts has assigned a buy or better ratings (3) on the Invesco Ltd. stock, while 12 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $17.77. This price target implies potential upside of -2.26 percent over the next 12 months based on the current share price.
Invesco Ltd. (IVZ) Post Earnings Announcement Drift (PEAD)
Back on October 23, 2019, Invesco Ltd. (NYSE:IVZ) released its Q3 results, in which it recorded EPS of $0.7 that exceeded consensus estimates of $0.57. After the earnings were reported, the price of IVZ stock kicked off the session at $16.46 and remained in a range of $16.71 to $17.32 on the first day. The shares were priced at $17.28 at the close with a total volume of shares being 9405085.
On July 25, 2019, the Q2 earnings report was disclosed with EPS of $0.65. This was above the estimation of $0.59 per share. The stock price range of IVZ was between $20.19 and $20.33 on the first-day post announcement, after opening the day at $19.09. The session came to close at $19.53 and there was a total volume of 8730694 shares.
April 25, 2019 was the day when its Q1 results were unveiled. The earnings came in at $0.56, beating the projected $0.53 per share. The very next day, IVZ stock opened at $21.35 while staying in a range of $21.77 to $22.18. At the end, it moved to $21.94 a total volume of shares been 5892867.
In the year-ago Q4 earnings on January 30, 2019, the company saw profit per share of $0.44. That was worse than the $0.53 analysts had expected. Invesco Ltd. share price started at $18.03 on the first full trading day post-earning and then exchanged hands between $18.76 and $18.91 throughout the session. The closing price of $18.59 came on the back of 7507426 shares in volume.