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Invesco Beats on Both Top and Bottom Lines

Wednesday - 5/1/2013, 2:00am  ET

Invesco reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Invesco beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew.

Gross margins shrank, operating margins increased, net margins grew.

Revenue details
Invesco reported revenue of $1.16 billion. The nine analysts polled by S&P Capital IQ expected a top line of $1.14 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $1.03 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.52. The 19 earnings estimates compiled by S&P Capital IQ predicted $0.47 per share. Non-GAAP EPS of $0.52 for Q1 were 18% higher than the prior-year quarter's $0.44 per share. GAAP EPS of $0.49 for Q1 were 14% higher than the prior-year quarter's $0.43 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.2%, 30 basis points worse than the prior-year quarter. Operating margin was 24.1%, 170 basis points better than the prior-year quarter. Net margin was 19.5%, 70 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $1.17 billion. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $4.73 billion. The average EPS estimate is $2.17.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 86 members out of 104 rating the stock outperform, and 18 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 35 give Invesco a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Invesco is outperform, with an average price target of $30.37.

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This article was originally published as Invesco Beats on Both Top and Bottom Lineson Fool.com

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