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Why Earnings Beat is Less Likely for Ameriprise (AMP) in Q3
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Ameriprise Financial, Inc. (AMP - Free Report) is scheduled to report third-quarter 2017 results after the market closes on Oct 24. While its earnings are expected to grow year over year, revenues are expected to witness a decline.
Last quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were primarily driven by higher revenues and lower expenses. Also, assets under management (AUM) witnessed growth.
That said, the company also has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 5.4%.
Moreover, activities of the company during the third quarter encouraged analysts to revise earnings estimates upward. As a result, the Zacks Consensus Estimate for earnings increased 2.5% over the last 30 days. Also, the figure represents growth of 24.9% on a year-over-year basis.
However, the Zacks Consensus Estimate for sales is $2.95 billion for the to-be-reported quarter, which is expected to witness a decline of 1.5% year over year.
Notably, the company’s price performance has been quite encouraging. Ameriprise’s shares have gained 38.9% year to date, outperforming the industry’s rally of 27%.
AMERIPRISE FINANCIAL SERVICES, INC. Price and EPS Surprise
Will the rally in stock price continue post Q3 earnings release? To a great extent this depends on the company’s ability to maintain its trend of beating earnings estimates. Let’s take a look at what our quantitative model predicts.
According to our quantitative model, chances of Ameriprise beating the Zacks Consensus Estimate in the third quarter are low. This is because it does not have the right combination of the two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: Ameriprise has an Earnings ESP of -0.52%.
Zacks Rank: Ameriprise currently carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, we also need a positive ESP to be confident of an earnings beat.
Factors to Influence Q3 Results
Ameriprise has been consistently making efforts to improve its business. This is expected to have a positive impact on profitability during the quarter.
Further, we expect Advice & Wealth Management segment’s (AWM) performance to continue driving the company’s results in the quarter. The segment witnessed growth in assets in the previous quarter. Based on expectations of improved advisor productivity, the same is expected to continue in the to-be-reported quarter.
Moreover, the company expects margin expansion in the AWM segment to continue, assuming that no significant market disruptions will take place.
However, the Asset Management segment has been witnessing elevated levels of outflows for the last few quarters. In fact, as the company continues to make changes to enhance financial performance, outflows are expected to continue in the to-be-reported quarter. This might adversely affect the segment’s performance.
Stocks That Warrant a Look
Here are a few stocks you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat this quarter.
TD Ameritrade Holding Corporation (AMTD - Free Report) is slated to report results on Oct 24. It has an earnings ESP of +0.82% and a Zacks Rank of 2.
Legg Mason, Inc. has an Earnings ESP of +0.97% and carries a Zacks Rank of 3. It is scheduled to report results on Oct 25.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Why Earnings Beat is Less Likely for Ameriprise (AMP) in Q3
Ameriprise Financial, Inc. (AMP - Free Report) is scheduled to report third-quarter 2017 results after the market closes on Oct 24. While its earnings are expected to grow year over year, revenues are expected to witness a decline.
Last quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were primarily driven by higher revenues and lower expenses. Also, assets under management (AUM) witnessed growth.
That said, the company also has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 5.4%.
Moreover, activities of the company during the third quarter encouraged analysts to revise earnings estimates upward. As a result, the Zacks Consensus Estimate for earnings increased 2.5% over the last 30 days. Also, the figure represents growth of 24.9% on a year-over-year basis.
However, the Zacks Consensus Estimate for sales is $2.95 billion for the to-be-reported quarter, which is expected to witness a decline of 1.5% year over year.
Notably, the company’s price performance has been quite encouraging. Ameriprise’s shares have gained 38.9% year to date, outperforming the industry’s rally of 27%.
AMERIPRISE FINANCIAL SERVICES, INC. Price and EPS Surprise
AMERIPRISE FINANCIAL SERVICES, INC. Price and EPS Surprise | AMERIPRISE FINANCIAL SERVICES, INC. Quote
Will the rally in stock price continue post Q3 earnings release? To a great extent this depends on the company’s ability to maintain its trend of beating earnings estimates. Let’s take a look at what our quantitative model predicts.
According to our quantitative model, chances of Ameriprise beating the Zacks Consensus Estimate in the third quarter are low. This is because it does not have the right combination of the two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: Ameriprise has an Earnings ESP of -0.52%.
Zacks Rank: Ameriprise currently carries a Zacks Rank #2 (Buy), which increases the predictive power of ESP. However, we also need a positive ESP to be confident of an earnings beat.
Factors to Influence Q3 Results
Ameriprise has been consistently making efforts to improve its business. This is expected to have a positive impact on profitability during the quarter.
Further, we expect Advice & Wealth Management segment’s (AWM) performance to continue driving the company’s results in the quarter. The segment witnessed growth in assets in the previous quarter. Based on expectations of improved advisor productivity, the same is expected to continue in the to-be-reported quarter.
Moreover, the company expects margin expansion in the AWM segment to continue, assuming that no significant market disruptions will take place.
However, the Asset Management segment has been witnessing elevated levels of outflows for the last few quarters. In fact, as the company continues to make changes to enhance financial performance, outflows are expected to continue in the to-be-reported quarter. This might adversely affect the segment’s performance.
Stocks That Warrant a Look
Here are a few stocks you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat this quarter.
TD Ameritrade Holding Corporation (AMTD - Free Report) is slated to report results on Oct 24. It has an earnings ESP of +0.82% and a Zacks Rank of 2.
Legg Mason, Inc. has an Earnings ESP of +0.97% and carries a Zacks Rank of 3. It is scheduled to report results on Oct 25.
Lazard Ltd. (LAZ - Free Report) is slated to report results on Oct 26. It has an earnings ESP of +1.39% and carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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