AllianceBernstein (NYSE:AB) Posts Earnings Results

AllianceBernstein (NYSE:AB) announced its earnings results on Tuesday. The asset manager reported $0.82 EPS for the quarter, missing the consensus estimate of $0.83 by ($0.01), Zacks reports. AllianceBernstein had a return on equity of 26.05% and a net margin of 6.60%.The business had revenue of $887.55 million for the quarter, compared to the consensus estimate of $907.67 million. During the same period in the prior year, the business posted $0.76 earnings per share. The firm’s revenue for the quarter was up 7.5% compared to the same quarter last year.

Here are the key takeaways from AllianceBernstein’s conference call:

• Record growth and return to positive organic flows: Second-quarter AUM exceeded $905 billion, net flows were nearly $800 million, and gross sales reached a five-year high of $31 billion. Growth was led by insurance, fixed income, alternatives, private wealth, SMAs, retirement and active ETFs.
• Private markets target achieved ahead of schedule: Private-market AUM reached $91 billion, surpassing the low end of AB’s $90 billion-$100 billion 2027 target more than a year early. Including approximately $12 billion of commercial mortgage loans onboarded in July, AUM now exceeds the target’s upper end.
• Improved earnings outlook and operating leverage: Adjusted earnings per unit rose 8% year over year to $0.82, while the adjusted operating margin expanded to 33%. AB raised its 2026 performance-fee outlook to $115 million-$135 million and lowered its non-compensation expense and tax-rate guidance.
• Equitable/Corebridge transaction could materially expand scale: Management expects to add at least $100 billion of Corebridge assets over time, with 20%-30% potentially onboarding in 2027 and further assets in 2028. Executives expect high incremental margins because much of the infrastructure is already in place, although fee rates may be lower for core fixed-income assets.
• Equity performance and certain flows remain weak: Only 23% of equity AUM outperformed over the past year, while active-equity outflows were nearly $11 billion and taxable fixed-income outflows exceeded $4 billion. Management attributed much of the pressure to retail redemptions in Asia-Pacific and investor preference for strong local equity markets.

AllianceBernstein Price Performance

NYSE AB opened at $37.09 on Thursday. The business has a fifty day moving average price of $36.84 and a two-hundred day moving average price of $38.32. AllianceBernstein has a fifty-two week low of $34.92 and a fifty-two week high of $44.11. The stock has a market capitalization of $3.46 billion, a PE ratio of 10.97, a PEG ratio of 1.20 and a beta of 0.81.

AllianceBernstein Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 27th. Shareholders of record on Wednesday, August 12th will be given a dividend of $0.82 per share. This represents a $3.28 annualized dividend and a yield of 8.8%. The ex-dividend date is Wednesday, August 12th. AllianceBernstein’s payout ratio is currently 102.15%.

Hedge Funds Weigh In On AllianceBernstein

Several hedge funds and other institutional investors have recently modified their holdings of the business. NewEdge Advisors LLC raised its holdings in shares of AllianceBernstein by 2.5% during the 4th quarter. NewEdge Advisors LLC now owns 10,849 shares of the asset manager’s stock worth $417,000 after buying an additional 264 shares in the last quarter. Creative Planning boosted its stake in AllianceBernstein by 3.1% in the third quarter. Creative Planning now owns 15,119 shares of the asset manager’s stock valued at $578,000 after buying an additional 450 shares in the last quarter. Ameriprise Financial Inc. boosted its stake in AllianceBernstein by 1.5% in the third quarter. Ameriprise Financial Inc. now owns 38,455 shares of the asset manager’s stock valued at $1,470,000 after buying an additional 566 shares in the last quarter. Mercer Global Advisors Inc. ADV grew its position in AllianceBernstein by 7.4% in the third quarter. Mercer Global Advisors Inc. ADV now owns 8,397 shares of the asset manager’s stock valued at $321,000 after acquiring an additional 576 shares during the last quarter. Finally, Janney Montgomery Scott LLC grew its position in AllianceBernstein by 0.3% in the fourth quarter. Janney Montgomery Scott LLC now owns 227,323 shares of the asset manager’s stock valued at $8,747,000 after acquiring an additional 692 shares during the last quarter. Institutional investors own 19.25% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. Barclays reduced their price target on AllianceBernstein from $40.00 to $39.00 and set an “equal weight” rating on the stock in a research report on Wednesday, April 29th. TD Cowen lifted their price objective on AllianceBernstein from $37.00 to $38.00 and gave the company a “hold” rating in a report on Monday, July 20th. Zacks Research upgraded AllianceBernstein from a “strong sell” rating to a “hold” rating in a research report on Monday, June 29th. Weiss Ratings downgraded AllianceBernstein from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, June 29th. Finally, Sanford C. Bernstein reissued an “outperform” rating on shares of AllianceBernstein in a report on Friday, July 10th. Two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $39.50.

Key Stories Impacting AllianceBernstein

Here are the key news stories impacting AllianceBernstein this week:

• Positive Sentiment: Assets under management rose 9.2% year over year and 8.0% sequentially to a record $905.5 billion, supported by market appreciation and improving flows. AllianceBernstein Q2 GAAP EPU rises to 77 cents as AUM tops $905 billion
• Positive Sentiment: AllianceBernstein reported $0.82 in adjusted earnings per unit, up from $0.76 a year earlier, while GAAP earnings increased to $0.77 from $0.64. GAAP operating income climbed 30.2% year over year to $289.2 million. AllianceBernstein Holding announces second-quarter results
• Positive Sentiment: Total net flows improved to a $0.8 billion inflow from a $7.1 billion outflow in the prior quarter. Retail and institutional channels posted inflows, indicating improved demand for the firm’s investment products. AllianceBernstein Q2 earnings call highlights
• Positive Sentiment: The company declared a quarterly cash distribution of $0.82 per unit, payable August 27 to investors of record August 12. The approximately 8.8% indicated yield may support income-focused demand for AB units. AllianceBernstein stock and dividend information
• Neutral Sentiment: Management’s earnings call emphasized record AUM and steadier fundamentals, but investors are still assessing whether the improved flows and operating performance justify the partnership’s valuation. AllianceBernstein following Q2 earnings: the fair value debate is still open
• Negative Sentiment: Adjusted EPS of $0.82 narrowly missed the $0.83 consensus estimate, while revenue of $887.55 million was below the $907.67 million forecast. The revenue miss is likely the main reason for the cautious stock reaction despite year-over-year growth. AllianceBernstein matches earnings forecasts while revenue misses expectations
• Negative Sentiment: Private Wealth recorded a $0.7 billion net outflow, partially offsetting retail and institutional gains, while earnings declined sequentially from the first quarter on a GAAP basis. These factors may temper optimism about the durability of the recovery.

About AllianceBernstein

AllianceBernstein is a global investment management firm that offers a broad range of research-driven strategies across equities, fixed income, multi-asset solutions and alternative investments. The firm provides active and quantitative portfolio management, drawing on in-house research capabilities to serve the needs of institutional clients, private wealth investors and intermediaries. Its product lineup encompasses mutual funds, separately managed accounts and customized investment vehicles designed to meet diverse risk-return objectives.

The firm’s roots date back to 1967 with the founding of Sanford C.