When it comes to deal-hunting, there are five areas in particular that Tom Faust
is keeping an eye on.
| Thomas E. Faust|
Faust, chairman and CEO of Eaton Vance
, shared that tidbit and more yesterday on the Boston-based fund firm's fiscal Q3 2019 earnings call with analysts (transcribed by Seeking Alpha
). Eaton Vance's fiscal Q3 ended on July 31.
In response to a question from Autonomous Research
partner Patrick Davitt
, Faust pointed in particular to private credit, wealth management, ESG (like Eaton Vance's Calvert
arm), customized SMAs (like Eaton Vance's Parametric
arm), and non-U.S. business as "areas of interest" for possible M&A. He describes such areas as possible ways of rounding out Eaton Vance's business.
"Our business continues to be approximately 95% in the U.S. and 5% outside," Faust said. "We've stated
our long-term goal to become more diversified internationally."
Yesterday morning, before the earnings call, the Eaton Vance team reported
$0.90 in fiscal Q3 earnings per diluted share and revenue of $431.235 million, beating
earnings estimates by $0.03 but missing
revenue estimates by $1.46 million. AUM on July 31, 2019 reached a record $482.8 billion, up three percent for the quarter, up ten percent year-to-date, and up seven percent year-over-year. The firm brought in $8.01 billion in net fiscal Q3 2019 inflows, up 73 percent from fiscal Q2 2019 and up 115 percent year-over-year.
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