AllianceBernstein (NYSE:AB) Announces Quarterly Earnings Results

AllianceBernstein (NYSE:AB - Get Free Report) announced its earnings results on Tuesday. The asset manager reported $0.88 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.86 by $0.02, Zacks reports. AllianceBernstein had a return on equity of 25.94% and a net margin of 6.60%. The company had revenue of $904.25 million for the quarter, compared to analyst estimates of $913.82 million. During the same period in the prior year, the company posted $0.86 EPS. AllianceBernstein's quarterly revenue was up 7.8% on a year-over-year basis.

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

• Adjusted earnings per unit rose 2% year over year to $0.88, while adjusted net revenues increased 2% to $904 million. Operating margin improved sequentially to 33.5%, and the company narrowed its full-year non-compensation expense outlook to $620 million–$635 million.
• AllianceBernstein reported nearly $7 billion of firm-wide net inflows, with alternatives and multi-asset solutions leading demand. Private-markets AUM exceeded $105 billion, surpassing the company’s $90 billion–$100 billion 2027 target ahead of schedule.
• The planned onboarding of approximately $100 billion of Corebridge assets is expected to lift AUM toward $1 trillion and provide scalable, long-duration capital with attractive incremental margins. Management also raised its 2026 performance-fee outlook to $135 million–$150 million.
• Active equities recorded more than $12 billion of net outflows, while retail taxable fixed income experienced over $3 billion of outflows. Performance remains mixed, with only 26% of equity AUM and 49% of fixed-income AUM outperforming over the one-year period.
• Seth Bernstein will retire as CEO on April 1, 2027, with President Onur Erzan succeeding him. Management expressed confidence in the transition, while noting that continued investment in talent, technology, and growth platforms is likely to keep margins within the 30%–35% target range for some time.

AllianceBernstein Stock Performance

Shares of NYSE:AB traded up $0.53 during trading on Thursday, reaching $35.25. The company had a trading volume of 208,969 shares, compared to its average volume of 336,189. The firm's fifty day moving average is $35.69 and its 200 day moving average is $37.55. The firm has a market capitalization of $3.28 billion, a PE ratio of 10.43, a price-to-earnings-growth ratio of 1.17 and a beta of 0.79. AllianceBernstein has a twelve month low of $33.90 and a twelve month high of $44.11.

AllianceBernstein Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Friday, November 6th will be given a dividend of $0.88 per share. This is a positive change from AllianceBernstein's previous quarterly dividend of $0.82. The ex-dividend date is Friday, November 6th. This represents a $3.52 dividend on an annualized basis and a dividend yield of 10.0%. AllianceBernstein's payout ratio is presently 97.04%.

Wall Street Analyst Weigh In

Several research firms recently issued reports on AB. Weiss Ratings cut shares of AllianceBernstein from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, August 3rd. Sanford C. Bernstein reiterated a "hold" rating and issued a $35.00 price target on shares of AllianceBernstein in a research note on Wednesday. Barclays cut their price objective on AllianceBernstein from $39.00 to $37.00 and set an "equal weight" rating on the stock in a research note on Wednesday, October 14th. TD Cowen reduced their target price on AllianceBernstein from $36.00 to $35.00 and set a "hold" rating on the stock in a report on Wednesday. Finally, Evercore set a $39.00 price objective on shares of AllianceBernstein in a research note on Friday, July 10th. One investment analyst has rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and an average target price of $36.50.

Insider Buying and Selling

In other AllianceBernstein news, Director Charles Stonehill sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $37.17, for a total value of $185,850.00. Following the completion of the sale, the director directly owned 24,573 shares in the company, valued at $913,378.41. This represents a 16.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.80% of the stock is currently owned by insiders.

AllianceBernstein Company Profile

AllianceBernstein Holding L.P. NYSE: AB is a global investment management and research firm serving institutional investors, retail clients and private-wealth customers. The company provides investment strategies and advisory services across equities, fixed income, multi-asset portfolios and alternative investments.

AllianceBernstein offers actively managed and customized portfolios, along with mutual funds, separately managed accounts, institutional mandates and other investment vehicles.