AllianceBernstein Holding L.P. (NYSE:AB) reported stronger-than-expected third-quarter earnings on Thursday, supported by robust performance in its tax-exempt and private alternative investment strategies. Shares gained 3.84% in premarket trading following the results.
Adjusted earnings per unit came in at $0.86, slightly above the analyst consensus of $0.85. Revenue surged to $1.14 billion, well ahead of expectations of $897.08 million, marking a 4.8% increase year over year. Adjusted operating income jumped 14.5% to $302.4 million.
The firm’s adjusted operating margin improved by 290 basis points year over year to 34.2%, while assets under management climbed 6.7% to $860.1 billion from $805.9 billion a year earlier.
“AllianceBernstein’s strong financial and operational results in the third quarter reflect our focused execution on strategic objectives, including forming new partnerships and enhancing our capabilities to better serve our clients,” said Seth Bernstein, President and CEO of AllianceBernstein.
The company recorded net outflows of $2.3 billion during the quarter, but excluding $4.0 billion in outflows tied to the pre-announced Equitable-RGA reinsurance transaction, it achieved $1.7 billion in net inflows. Tax-exempt strategies brought in $4.1 billion, while alternatives and multi-asset strategies added $3.2 billion.
AllianceBernstein declared a cash distribution of $0.86 per unit, up 11.7% from $0.77 in the same period last year.
“Our investment teams excel in combining tactical insights with a disciplined, long-term strategy to curate high-quality investment options for our clients,” Bernstein added.