AllianceBernstein (NYSE:AB) Announces Earnings Results, Misses Expectations By $0.04 EPS

Key Points

• AllianceBernstein reported adjusted EPS of $0.83, missing consensus by about $0.04, and revenue of $871.1 million versus expectations near $914.5 million, though revenue was up ~3.9% year‑over‑year with a strong return on equity (~21%).
• The company announced a proposed merger with Equitable/Corebridge that management says will materially scale the business, eventually adding at least $100 billion of general and separate account assets and creating a combined general account base of over $350 billion with expanded insurance‑channel distribution.
• Flows remain a concern: firm‑wide net outflows were roughly $6 billion in Q1 (including about $11 billion of active equity redemptions), which pressures AUM and fees, while the firm declared a quarterly distribution of $0.83 (≈8.6% yield) amid a high payout ratio (~128%), raising questions about distribution sustainability.

AllianceBernstein (NYSE:AB - Get Free Report) issued its earnings results on Tuesday. The asset manager reported $0.83 EPS for the quarter, missing analysts' consensus estimates of $0.87 by ($0.04), FiscalAI reports. The firm had revenue of $871.13 million during the quarter, compared to analysts' expectations of $914.51 million. AllianceBernstein had a net margin of 6.62% and a return on equity of 21.17%. The business's revenue for the quarter was up 3.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.80 EPS.

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

• Proposed Equitable Corebridge merger$100 billion of general and separate account assets over time, joining a combined general account base of more than $350 billion and creating meaningful insurance-channel distribution opportunities.
• Firm-wide net outflows were roughly $6 billion in Q1, including about $11 billion of active equity redemptions and nearly $2 billion from taxable fixed income, driven by performance challenges and regional retail redemptions (Asia Pacific), which pressures AUM and fee rate.
• Private markets momentum remains strong with fee-paying AUM at $85 billion (up 13% YoY), a record institutional pipeline of $27.5 billion (including $9 billion of new commitments), and a stated target of $90–$100 billion private markets AUM by 2027.
• Adjusted results show modest growth — adjusted EPS of $0.83 (+4% YoY) and net revenues of $871 million (+4% YoY) — and the firm distributed 100% of adjusted earnings to unit holders, supporting near-term shareholder return visibility.
• Management raised its full‑year performance fee outlook to $95–$115 million (up from $80–$100M), driven by stronger public-market realizations (notably an International SMID strategy), while keeping private-markets performance fee guidance at $70–$80M.

AllianceBernstein Trading Up 1.2%

Shares of AllianceBernstein stock opened at $38.53 on Wednesday. The firm has a fifty day simple moving average of $38.38 and a 200-day simple moving average of $39.44. AllianceBernstein has a 1-year low of $35.59 and a 1-year high of $44.11. The stock has a market capitalization of $3.56 billion, a price-to-earnings ratio of 12.84, a PEG ratio of 1.82 and a beta of 0.86.

AllianceBernstein Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, May 21st. Stockholders of record on Friday, May 8th will be paid a $0.83 dividend. This represents a $3.32 dividend on an annualized basis and a dividend yield of 8.6%. The ex-dividend date is Friday, May 8th. AllianceBernstein's payout ratio is presently 128.00%.

Key Stories Impacting AllianceBernstein

Here are the key news stories impacting AllianceBernstein this week:

• Positive Sentiment: AB declared a quarterly cash distribution of $0.83 per unit (matching adjusted net income) with an indicated yield around 8.6%, supporting income-focused investor demand. PR Newswire — First Quarter Results
• Positive Sentiment: Profitability remains strong: Q1 showed a return on equity ~21.2% and a positive net margin, and revenue was up ~3.9% year-over-year — metrics investors view as evidence of operating resilience. MarketBeat — Q1 Results & Transcript
• Neutral Sentiment: Earnings call transcript and slide deck are available for deeper read on strategy and flows; useful for assessing management commentary on growth initiatives and mergers. Seeking Alpha — Q1 Earnings Call Transcript
• Neutral Sentiment: Analyst write-ups note management balancing multiple growth engines amid equity-market headwinds; useful context but not a clear near-term catalyst. TipRanks — Call Highlights
• Negative Sentiment: Q1 results missed consensus: EPS $0.83 vs. $0.85 expected and revenue $871.1M vs. $914.5M expected — the top- and bottom-line shortfall is a near-term negative for sentiment and could pressure fee-related revenue if flows weaken. MarketBeat — Earnings Miss
• Negative Sentiment: Commentary and coverage signal that dividend levels have shifted relative to prior payouts (article notes a drop), which may raise questions about distribution sustainability if earnings/flows weaken. Seeking Alpha — Dividend Analysis

Analyst Ratings Changes

AB has been the topic of several recent research reports. Weiss Ratings raised shares of AllianceBernstein from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Tuesday, February 17th. Zacks Research lowered shares of AllianceBernstein from a "hold" rating to a "strong sell" rating in a research note on Tuesday, April 21st. Sanford C. Bernstein restated a "negative" rating on shares of AllianceBernstein in a report on Friday, April 17th. TD Cowen reaffirmed a "hold" rating on shares of AllianceBernstein in a research note on Wednesday, January 14th. Finally, Barclays decreased their price objective on shares of AllianceBernstein from $41.00 to $40.00 and set an "equal weight" rating for the company in a report on Friday, April 17th. Two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $41.42.

Institutional Investors Weigh In On AllianceBernstein

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Morgan Stanley boosted its stake in AllianceBernstein by 79.2% during the 4th quarter. Morgan Stanley now owns 1,412,548 shares of the asset manager's stock valued at $54,355,000 after purchasing an additional 624,270 shares during the period. Goldman Sachs Group Inc. increased its position in AllianceBernstein by 51.8% during the first quarter. Goldman Sachs Group Inc. now owns 916,574 shares of the asset manager's stock worth $35,114,000 after acquiring an additional 312,878 shares during the period. Focus Partners Wealth raised its stake in AllianceBernstein by 1,154.2% during the 3rd quarter. Focus Partners Wealth now owns 336,502 shares of the asset manager's stock valued at $12,861,000 after purchasing an additional 309,673 shares during the last quarter. HRT Financial LP raised its stake in AllianceBernstein by 438.1% during the 2nd quarter. HRT Financial LP now owns 108,143 shares of the asset manager's stock valued at $4,415,000 after purchasing an additional 88,045 shares during the last quarter. Finally, Lavaca Capital LLC bought a new stake in AllianceBernstein in the 3rd quarter valued at $1,531,000. 19.25% of the stock is owned by institutional investors and hedge funds.

AllianceBernstein Company Profile

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.