Artisan 10-Q: Q3 EPS $1.04, AUM Slides to $168.7B on $10.6B Outflows

summarizeSummary

Artisan's Q3 10-Q confirms $312.5M revenue, $1.04 EPS and $168.7B in AUM after $10.6B of net client outflows, with about $2.5B more outflows expected in Q4 from fund distributions.

check_boxKey Events · Earnings and Guidance · APAM

• Q3 Results: Revenue Up, EPS $1.04

  Revenue rose 4% to $312.5M from $301.3M a year earlier, and net income attributable to APAM was $75.2M, or $1.04 per diluted share versus $0.93.

• AUM Falls 8% on $10.6B Outflows

  Ending AUM dropped to $168.7B from $183.4B at June 30, driven by $10.6B of net client cash outflows and $3.8B of market depreciation.

• Outflows Concentrated in Equity

  Equity strategies lost $11.6B net, including $5.9B of rebalancing from one large Global Value client and $1.9B from the completed U.S. Value wind-down; credit and alternatives added $1.1B.

• Q4 Distribution Outflows Expected

  Management expects about $2.5B of fourth-quarter net outflows from Artisan Funds distributions that investors choose not to reinvest.

auto_awesomeAnalysis · APAM · Finance

The headline numbers were already out on October 27, but the 10-Q puts the full picture on the record. Revenue rose 4% to $312.5M and EPS climbed to $1.04 from $0.93, yet assets kept bleeding. Ending AUM fell 8% to $168.7B as clients pulled $10.6B net in the quarter, including $5.9B of rebalancing by one large Global Value client and $1.9B tied to the completed U.S. Value wind-down. Management also flagged roughly $2.5B of expected fourth-quarter outflows from fund distributions investors don't reinvest. Fee revenue is holding up because the mix shifted toward higher-fee vehicles, but the outflow trend is the number that matters for future management fees.