Silvercrest Q2 adjusted EPS falls as expenses rise
SAMG•Key financial details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $30.78 mln | $30.25 mln (2 Analysts) |
| Q2 Adjusted EPS | Miss | $0.10 | $0.11 (2 Analysts) |
| Q2 Adjusted Net Income | Beat | $1.16 mln | $1.06 mln (2 Analysts) |
| Q2 Net Income | $469,000 | ||
| Q2 Adjusted EBITDA | Miss | $3.44 mln | $3.70 mln (1 Analyst) |
| Q2 Adjusted EBITDA Margin | 11.20% |
Q2 results and key drivers
- Asset manager's Q2 revenue rose 0.4% yr/yr, while adjusted EPS fell
- Discretionary AUM rose 6.9% sequentially, driven by market gains, offset by net outflows
- Expenses rose due to higher compensation and expansion-related costs
Result drivers
- Market appreciation - Revenue growth was mainly driven by market gains in discretionary AUM, partially offset by net client outflows
- Client outflows - Net client outflows, primarily from seasonal high net worth withdrawals for tax payments and institutional outflows, weighed on AUM and revenue
- Higher expenses - Compensation and general administrative costs rose due to merit-based salary increases, new hires, bonus accruals, and expansion-related spending
