Invesco 4Q profit more than triples, misses Street

Last Updated: Thu, Jan 28, 2010 17:50 hrs

Investment manager Invesco Ltd. on Thursday said its fourth-quarter profit more than tripled as the market rallied, but results fell short of Wall Street expectations and shares fell.

For the final three months of 2009, net income attributable to common shareholders rose to $110.9 million, or 25 cents per share, compared with $31.9 million, or 8 cents per share, in the 2008 fourth quarter.

Revenue rose 18 percent to $747.8 million, from $634.4 million in the prior-year period.

Analysts polled by Thomson Reuters, on average, expected profit of 28 cents per share, on revenue of $745.6 million.

Investment management fees increased 28 percent to $611.8 million in the quarter. Service and distribution fees rose 10 percent to $111.4 million. Performance fees, however, plunged 71 percent to $6.8 million.

Assets under management at Dec. 31 were $423.1 billion, up 18 percent from $357.2 billion. That mainly reflected market gains.

Operating expenses increased 7 percent to $587.3 million in the fourth quarter, primarily due to the impact of higher market values on distribution-related expenses, and $9.8 million of transaction and integration charges related to the acquisition of the Morgan Stanley retail asset management business.

Employee compensation expenses increased 5 percent to $247.1 million. The company ended the year with 435 fewer employees than the year earlier, down to 4,890.

In midday trading, Invesco shares slid $1.45, or 6.7 percent, to $20.24 in heavy trading. The stock has changed hands between $9.33 and $24.07 in the past 52 weeks, and started the session down about 8 percent since the beginning of the year.

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