Shares of Waddell & Reed Financial Inc. WDR gained 4.2%, following the release of third-quarter 2019 results. Its earnings per share of 46 cents surpassed the Zacks Consensus Estimate of 40 cents. However, the bottom line declined 21% year over year.Results were driven by a decline in expenses. However, fall in assets under management (AUM) and lower revenues were major headwinds. Further, all distribution channels witnessed outflows.Net income attributable to Waddell & Reed totaled $33.1 million, down 29% from the prior-year quarter.Revenues, Expenses & AUM DeclineRevenues declined 8% year over year to $270.7 million, reflecting lower investment management fees, underwriting and distribution fees, and shareholder service fees. However, the figure beat the Zacks Consensus Estimate of $266.8 million.Gross sales declined 30% year over year to $1.8 billion. Redemptions were $4.5 billion, slightly down from $4.6 billion recorded in the prior-year quarter. Net outflows were $2.7 billion compared with $2 billion in the year-ago quarter.Operating expenses declined 2% year over year to $230.7 million. Almost all expense components, except for distribution costs, compensation and benefits costs, and subadvisory fees, witnessed a fall.Operating margin was 14.8%, down from 20.2%.As of Sep 30, 2019, AUM totaled $68.8 billion, down 14% year over year.As of Sep 30, 2019, the company’s cash and cash equivalents, and investment securities totaled $854.2 million. Long-term debt was $94.9 million and stockholders’ equity was $839.5 million.Performance of Distribution ChannelsAt the Unaffiliated channel, gross sales fell 37% year over year to $999 million. Net outflows were $1.4 billion compared with $476 million recorded in the year-ago quarter.Gross sales at the Institutional channel were $49 million, down 41% from the year-ago quarter. The segment witnessed net outflows of $181 million compared with net outflows of $452 million witnessed a year ago.At the Wealth Management channel, gross sales declined 15% year over year to $744 million. Net outflows totaled $1.1 billion, up 3% year over year.Share RepurchasesWaddell & Reed bought back 2.5 billion shares for $40.7 million during the reported quarter.Our TakeA continued decline in AUM is likely to hamper the company’s financials in the near term. Also, the presence of substantial intangibles on its balance sheet makes us apprehensive.Waddell & Reed Financial, Inc. Price, Consensus and EPS Surprise Waddell & Reed Financial, Inc. price-consensus-eps-surprise-chart | Waddell & Reed Financial, Inc. QuoteWaddell & Reed currently carries a Zacks Rank #5 (Strong Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other Asset ManagersCohen & Steers’ CNS third-quarter 2019 adjusted earnings of 65 cents per share beat the Zacks Consensus Estimate of 63 cents. Also, the bottom line was 1.6% higher than the year-ago quarter figure.BlackRock, Inc.’s BLK third-quarter 2019 adjusted earnings of $7.15 per share surpassed the Zacks Consensus Estimate of $6.95. However, the figure was 4.9% lower than the year-ago quarter’s number.Invesco IVZ reported third-quarter 2019 adjusted earnings of 70 cents per share, beating the Zacks Consensus Estimate of 57 cents. Also, the bottom line was 6.1% up from the prior-year quarter.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Waddell & Reed Financial, Inc. (WDR): Free Stock Analysis Report BlackRock, Inc. (BLK): Free Stock Analysis Report Invesco Ltd. (IVZ): Free Stock Analysis Report Cohen & Steers Inc (CNS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research