AlTi Global (NASDAQ:ALTI) Releases Quarterly Earnings Results, Misses Estimates By $0.01 EPS

AlTi Global (NASDAQ:ALTI) announced its quarterly earnings results on Monday. The basic materials company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.01), FiscalAI reports. The business had revenue of $57.90 million during the quarter, compared to analysts’ expectations of $65.80 million. AlTi Global had a negative net margin of 40.86% and a negative return on equity of 1.61%.

Here are the key takeaways from AlTi Global’s conference call:

• AUM and recurring fees grew: Assets under management reached $51.6 billion, up 5% year over year, primarily on strong investment performance. Recurring management and advisory fees rose 7%, although total revenue increased only 1% to $58 million.
• Expense reductions improved results: Operating expenses fell 25% year over year to $64 million, and adjusted EBITDA increased 1% year over year to more than $6 million. Management said further savings are expected, while noting some of the expense decline reflected the absence of prior-year costs.
• Outflows and an upcoming investment writedown weigh on the outlook: Net wealth management outflows were about $250 million, as reductions in lower-fee legacy accounts exceeded new client funding. AlTi expects a further $20 million–$23 million non-cash unrealized loss in Q4 on its Zebedee stake.
• New credit facility supports targeted growth: AlTi secured an $85 million facility, with $28 million drawn, and plans to use available capital in part for advisor and team lift-outs that expand existing offices and support growth. The revolver remains undrawn, and the delayed-draw term loan is intended for future opportunities.

AlTi Global Price Performance

Shares of NASDAQ ALTI traded up $0.13 during midday trading on Monday, hitting $2.47. The stock had a trading volume of 196,238 shares, compared to its average volume of 178,099. The company has a market capitalization of $385.18 million, a PE ratio of -1.78 and a beta of 0.82. The stock has a 50 day simple moving average of $2.89 and a 200-day simple moving average of $3.57. AlTi Global has a 1 year low of $2.26 and a 1 year high of $5.45. The company has a quick ratio of 0.97, a current ratio of 0.97 and a debt-to-equity ratio of 0.02.

Analysts Set New Price Targets

A number of equities analysts have issued reports on ALTI shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of AlTi Global in a research report on Thursday, October 15th. Wall Street Zen raised AlTi Global from a “sell” rating to a “hold” rating in a report on Saturday, September 19th. Finally, Zacks Research upgraded AlTi Global from a “strong sell” rating to a “hold” rating in a research report on Monday, October 19th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, AlTi Global presently has a consensus rating of “Reduce”.

About AlTi Global

AlTi Global, Inc is a global independent wealth manager that provides investment and advisory services to entrepreneurs, families, foundations and institutions. The company helps clients manage and preserve wealth through customized portfolio management, financial planning, investment advisory and family-office solutions.

Its services include traditional and alternative investment strategies, private markets and impact investing, as well as advice on governance, philanthropy, estate planning and other complex financial matters.