We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ameriprise (AMP) Beats on Q1 Earnings, Hikes Dividend by 11%
Read MoreHide Full Article
Ameriprise Financial’s (AMP - Free Report) first-quarter 2022 adjusted operating earnings per share of $5.98 surpassed the Zacks Consensus Estimate of $5.93. The bottom line reflects a rise of 10% from the year-ago quarter.
Results were aided by growth in revenues and solid improvement in the assets under management (AUM) and assets under administration (AUA) balance. However, increase in expenses was a headwind.
After considering significant items, net income (GAAP basis) was $761 million or $6.55 per share, up from $437 million or $3.58 per share in the prior-year quarter.
Revenues Improve, Expenses Rise
On an operating basis, adjusted total net revenues were $3.6 billion, up 10% year over year. The top line lagged the Zacks Consensus Estimate of $3.7 billion. On a GAAP basis, net revenues were $3.66 billion, up 9%.
Adjusted operating expenses totaled $2.8 billion, up 11% from the prior-year quarter.
Driven by solid client flows in the Advice & Wealth and the Asset Management segments, total AUM and AUA were $1.34 trillion, up 17% year over year.
Capital Deployments
In the reported quarter, Ameriprise repurchased 1.4 million shares for $429 million.
Concurrent with the earnings release, the company announced an 11% dividend hike. The dividend of $1.25 per share will be paid out on May 20 to shareholders on record as of May 9.
Our Take
Ameriprise’s solid AUM balance, diversified investment portfolio and business-restructuring efforts are expected to aid profitability. However, rising expenses make us apprehensive.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2022 adjusted earnings of $9.52 per share outpaced the Zacks Consensus Estimate of $8.92. The figure reflects a rise of 18.4% from the year-ago quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in the AUM balance.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2022 earnings of $1.36 per share were in line with the Zacks Consensus Estimate. The bottom line reflects a 53% jump from the prior-year quarter. The reported quarter comprised a one-time early termination fee of $88 million or 47 cents per share, which was included in information processing and software servicing fees.
SEIC’s Results were aided by revenue growth and an increase in AUM balance. These were offset by a rise in expenses.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Shutterstock
Ameriprise (AMP) Beats on Q1 Earnings, Hikes Dividend by 11%
Ameriprise Financial’s (AMP - Free Report) first-quarter 2022 adjusted operating earnings per share of $5.98 surpassed the Zacks Consensus Estimate of $5.93. The bottom line reflects a rise of 10% from the year-ago quarter.
Results were aided by growth in revenues and solid improvement in the assets under management (AUM) and assets under administration (AUA) balance. However, increase in expenses was a headwind.
After considering significant items, net income (GAAP basis) was $761 million or $6.55 per share, up from $437 million or $3.58 per share in the prior-year quarter.
Revenues Improve, Expenses Rise
On an operating basis, adjusted total net revenues were $3.6 billion, up 10% year over year. The top line lagged the Zacks Consensus Estimate of $3.7 billion. On a GAAP basis, net revenues were $3.66 billion, up 9%.
Adjusted operating expenses totaled $2.8 billion, up 11% from the prior-year quarter.
Driven by solid client flows in the Advice & Wealth and the Asset Management segments, total AUM and AUA were $1.34 trillion, up 17% year over year.
Capital Deployments
In the reported quarter, Ameriprise repurchased 1.4 million shares for $429 million.
Concurrent with the earnings release, the company announced an 11% dividend hike. The dividend of $1.25 per share will be paid out on May 20 to shareholders on record as of May 9.
Our Take
Ameriprise’s solid AUM balance, diversified investment portfolio and business-restructuring efforts are expected to aid profitability. However, rising expenses make us apprehensive.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
Ameriprise Financial, Inc. price-consensus-eps-surprise-chart | Ameriprise Financial, Inc. Quote
Ameriprise currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2022 adjusted earnings of $9.52 per share outpaced the Zacks Consensus Estimate of $8.92. The figure reflects a rise of 18.4% from the year-ago quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in the AUM balance.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2022 earnings of $1.36 per share were in line with the Zacks Consensus Estimate. The bottom line reflects a 53% jump from the prior-year quarter. The reported quarter comprised a one-time early termination fee of $88 million or 47 cents per share, which was included in information processing and software servicing fees.
SEIC’s Results were aided by revenue growth and an increase in AUM balance. These were offset by a rise in expenses.