MutualFundWire.com: 24 Years of Positive Net Flows

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Tuesday, December 3, 2019

24 Years of Positive Net Flows

Net income and AUM are on the rise at a Boston-based, publicly mutual fund firm.

Thomas E. Faust
Eaton Vance
Chairman, CEO

Last week the team at Eaton Vance [profile] released their fiscal Q4 2019 earnings (i.e. for their fiscal quarter that ended October 31, 2019). Tom Faust chairman and chief executive officer of Eaton Vance, says on their earnings call (as transcribed by Seeking Alpha), "We ended fiscal 2019 with $497.4 billion of consolidated assets under management also a new record high, and up 13% from the end of last year." He also states, "Fiscal 2019 marked Eaton Vance's 24th consecutive year of positive net flows. For the fiscal year, we generated $23.9 billion of consolidated net inflows, or $12.9 billion, excluding exposure management mandates, which have more volatile flows and lower average fee rates than our other mandate reporting categories. Fiscal 2019 net flows represent 5% internal growth in managed assets."

Analysts from Credit Suisse pointed out that Eaton Vance's "Headline earnings [are] better than our expectations but core results [are] slightly softer."

According to their earnings press release, revenues for just Q4 2019 were at $433.7 million, a one percent increase from $430.8 million in Q3 2019. For the fiscal year ending October 31, 2019, revenues were at $1.68 billion, a 0.5 percent decrease from the $1.69 billion in the fiscal year ending October 31, 2018.

Eaton Vance's net income for Q4 2019 reached at $118 million, a 9.25 percent increase from $108 million in Q3 2019. For the fiscal year ending October 31, 2019, net income totaled $432 million, an 8.8 percent increase from $397 million for fiscal year ending October 31, 2018.

Overall, Eaton Vance beats Q4 non-GAAP EPS expectations of $0.95 by $0.07, beats Q4 GAAP EPS expectations of $0.96 by $0.08, but misses revenue expectations $433.7 million (+0.6% year-on-year) by $4.68 million.

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