AllianceBernstein (NYSE:AB) Releases Earnings Results, Beats Estimates By $0.02 EPS

AllianceBernstein (NYSE:AB) posted its quarterly earnings results on Tuesday, October 27th. The asset manager reported $0.88 earnings per share for the quarter, beating the consensus estimate of $0.86 by $0.02, Zacks reports. AllianceBernstein had a return on equity of 25.97% and a net margin of 6.47%. The firm had revenue of $904.25 million for the quarter, compared to analyst estimates of $913.82 million. During the same period in the previous year, the firm earned $0.86 earnings per share. 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 AB opened at $33.89 on Thursday. The company has a 50-day simple moving average of $35.32 and a 200-day simple moving average of $37.33. AllianceBernstein has a 52 week low of $33.63 and a 52 week high of $44.11. The firm has a market capitalization of $3.12 billion, a P/E ratio of 9.74, a P/E/G ratio of 1.29 and a beta of 0.74.

AllianceBernstein Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Friday, November 6th will be paid a dividend of $0.88 per share. This represents a $3.52 annualized dividend and a yield of 10.4%. The ex-dividend date is Friday, November 6th. This is an increase from AllianceBernstein’s previous quarterly dividend of $0.82. AllianceBernstein’s dividend payout ratio is currently 104.14%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on AB shares. Barclays cut their target price on shares of AllianceBernstein from $39.00 to $37.00 and set an “equal weight” rating for the company in a research report on Wednesday, October 14th. TD Cowen lowered their price target on shares of AllianceBernstein from $36.00 to $35.00 and set a “hold” rating on the stock in a report on Wednesday, October 28th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of AllianceBernstein in a research note on Friday, October 30th. Finally, Sanford C. Bernstein reaffirmed a “hold” rating and issued a $35.00 price target on shares of AllianceBernstein in a research note on Wednesday, October 28th. One investment analyst has rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $36.50.

AllianceBernstein Company Profile

AllianceBernstein L.P. is a global investment management and research firm serving institutional and individual clients. Its offerings include active equity and fixed-income strategies, multi-asset solutions and alternative investments, as well as private wealth management services. The firm was formed in 2000 through the merger of Alliance Capital Management and Sanford C. Bernstein. Headquartered in Nashville, Tennessee, AllianceBernstein serves clients through offices and operations around the world.