Cohen & Steers Q4 Earnings: Can CNS Hit Its $0.67 EPS Target?

in EARNINGS/INVESTING IDEAS by

Cohen & Steers, Inc. (NYSE:CNS) is scheduled to report Q4 earnings results after the market closes on Wednesday, January 22, 2020. The company plans to host a conference call on Thursday, January 23, 2020, at 10:00 a.m. (ET).

The company is expected to report earnings of $0.67/share on revenue of $108.4 million. The consensus earnings per share (EPS) of $0.67/share is based on a poll of 4 analysts and represents a growth of 19.6% over the same quarter last year when the company reported earnings of $0.56/share.

The revenue forecast of $108.4 million based on a poll of 2 analysts implies a year-over-year (YoY) growth of 15.4%. Last year the company reported $93.906 million in revenue for the quarter.

Expected to report EPS growth of $0.11/share for Q4, 2019
Metric Expected Prior Year YoY Change
Revenue $108.38 $93.91 15.4%
EPS $0.67 $0.56 19.6%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, and missed expectations 3 quarters.

What are your expectations from Cohen & Steers for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q3, 2019 $0.63 $0.65 3.2% Beat
Q2, 2019 $0.63 $0.62 -1.6% Missed
Q1, 2019 $0.57 $0.58 1.8% Beat
Q4, 2018 $0.59 $0.56 -5.1% Missed
Q3, 2018 $0.62 $0.64 3.2% Beat
Q2, 2018 $0.62 $0.59 -4.8% Missed
Q1, 2018 $0.60 $0.62 2.5% Beat
Q4, 2017 $0.54 $0.55 1.9% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 6.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-17 $58.60 $62.21 6.2% Increase
2019-07-17 $52.36 $52.83 0.9% Increase
2019-04-17 $46.96 $48.28 2.8% Increase
2019-01-23 $36.76 $36.82 0.2% Increase

Fundamentals And Technical Analysis

Cohen & Steers is currently trading at $66.17/share, up 0.0% for the day. The company is trading at approximately 97.0% of its 52-week high of $68.23/share. The company’s stock price is up 6.4% since the last earnings report and up 2.5% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 61.29 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NYSE:CNS Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 23.3x and a forward P/E multiple of 26.0x. Cohen & Steers’s current share price also implies a price-to-book (P/B) multiple of 11.2x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q3
Period End Date September 30, 2019
Stock Price (Current) $66.17
P/E Ratio 23.3x
P/E Ratio (Fwd) 26.0x
PEG Ratio 1.9
Total Debt to Capital (%) 1.4%
Levered Free Cash Flow $103.9 million
Enterprise Value / EBITDA 20.2x

Source: Finbox

Company Profile: Cohen & Steers, Inc.

Cohen & Steers, Inc. is a mid-cap stock with a market capitalization of $3.125 billion and a total enterprise value of $3.079 billion. The company operates in the Financial sector and the Capital Markets industry.

Cohen & Steers, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to institutional investors, including pension funds, endowments, and foundations.

It manages separate client-focused equity, fixed income, multi-asset, and commodity portfolios through its subsidiaries. The firm launches and manages equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. Through its subsidiaries, it also launches and manages hedge funds.

The firm invests in public equity, fixed income, and commodity markets across the globe through its subsidiaries. Through its subsidiaries, it invests in companies operating in the real estate sector, including real estate investment trusts, infrastructure sector, and natural energy resources sector for its equity and fixed-income investments.

The firm also invests in preferred securities for its fixed-income investments through its subsidiaries.

Cohen & Steers, Inc. was founded in 1986 and is based in New York, with additional offices in London, United Kingdom; Central, Hong Kong; Tokyo, Japan; and Seattle, Washington.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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