Story updated at 9:50 a.m. to reflect market activity.
Shares of Invesco gained 1.2% to $38.20 in morning trading.
The firm also raised its full year 2014 and 2015 EPS estimates for the company by 3 cents and 12 cents, respectively. Invesco's growth trends across the platform remain positive in both asset class and geography according to Jefferies analysts.
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Separately, TheStreet Ratings team rates INVESCO LTD as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate INVESCO LTD (IVZ) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.2%. Since the same quarter one year prior, revenues rose by 14.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has significantly increased by 54.76% to -$219.20 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 14.98%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- INVESCO LTD's earnings per share declined by 12.2% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INVESCO LTD increased its bottom line by earning $1.96 versus $1.45 in the prior year. This year, the market expects an improvement in earnings ($2.45 versus $1.96).
- You can view the full analysis from the report here: IVZ Ratings Report