Atlanta-based Invesco Ltd. (IVZ) is a global investment management company dedicated to helping clients achieve their financial goals. With a market cap of $5.7 billion, the firm offers a diverse range of investment solutions, including mutual funds, ETFs, and private funds, catering to retail, institutional, and high-net-worth clients worldwide.

The asset manager is set to unveil its first-quarter earnings before the markets open on Tuesday, Apr. 22. Ahead of the event, analysts expect Invesco to report a non-GAAP profit of $0.40 per share, up a staggering 21.2% from $0.33 per share reported in the year-ago quarter. While the company has missed Street’s bottom-line estimates once over the past four quarters, it has surpassed or matched the projections on three other occasions.

For the full fiscal 2025, Invesco’s earnings are expected to grow to $1.85 per share, up 8.2% from $1.71 per share in fiscal 2024. Furthermore, its earnings are expected to surge 10.3% year-over-year to $2.04 per share in fiscal 2026.

However, IVZ stock has tanked 23.7% over the past 52 weeks, notably underperforming the Financial Select Sector SPDR Fund’s (XLF) 6.1% gains and the S&P 500 Index’s ($SPX) 2.7% decline during the same time frame.

Invesco has been facing revenue challenges amid a sustained shift in its AUM mix towards lower-fee investment products such as ETFs. This shift is driven by the broader market's movement towards passive investment products, which yield lower fee revenues for asset managers.

Nonetheless, Invesco’s stock prices soared nearly 9% after the release of its impressive Q4 results on Jan. 28. The company recorded $25.6 billion in net long-term inflows during the quarter, giving a notable boost to its AUM. Meanwhile, the company significantly reduced its operating expenses leading to margin expansion. During the quarter, Invesco’s topline increased 5.1% year-over-year to $1.6 billion, which surpassed the Street expectations. Furthermore, its adjusted net income surged 18.8% year-over-year to $237.3 and its adjusted EPS of $0.55 surpassed the consensus estimates by 6.1%, which boosted investor confidence.

However, analysts remain cautious about the stock’s longer-term prospects. The consensus opinion on IVZ stock is neutral, with an overall “Hold” rating. Out of the 18 analysts covering the stock, two recommend “Strong Buy,” 15 suggest “Hold,” and one advises “Strong Sell.” As of writing the stock is trading notably below its mean price target of $19.20.