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What's in the Cards for Ameriprise (AMP) in Q4 Earnings?
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Ameriprise Financial, Inc. (AMP - Free Report) is scheduled to report fourth-quarter and full-year 2017 results on Jan 24, after market close. While its earnings for the quarter 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 a decline in expenses. Also, assets under management (AUM) witnessed growth. However, a slight decline in revenues acted as a headwind.
That said, the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 12.5%.
However, activities of the company during the fourth quarter failed to encourage analysts to revise earnings estimates upward. As a result, the Zacks Consensus Estimate for earnings of $3.10 for the to-be-reported quarter decreased 1.3% over the last seven days. Nonetheless, the figure represents growth of 13.6% on a year-over-year basis.
The Zacks Consensus Estimate for sales is $3.03 billion for the quarter, which is expected to witness a decline of 1.2% year over year.
Notably, the company’s price performance has been quite encouraging. Ameriprise’s shares have gained 52.8% in 2017, outperforming the industry’s rally of 31.2%.
AMERIPRISE FINANCIAL SERVICES, INC. Price and EPS Surprise
Will the rally in stock price continue post Q4 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 fourth quarter are low. This is because it does not have the right combination of the two key ingredients — a 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 -1.88%.
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 Q4 Results
Ameriprise has been consistently making efforts to improve its business. This is expected to have a positive impact on its 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 affect the segment’s performance. Nonetheless, as the company enters more normalized markets, margins in this segment are anticipated to improve to the range of 35-39%.
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.
Associated Banc-Corp (ASB - Free Report) is slated to report results on Jan 25. It has an Earnings ESP of +0.64% and a Zacks Rank #2.
T. Rowe Price Group, Inc. (TROW - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank of 2. It is scheduled to come up with results on Jan 30.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Image: Bigstock
What's in the Cards for Ameriprise (AMP) in Q4 Earnings?
Ameriprise Financial, Inc. (AMP - Free Report) is scheduled to report fourth-quarter and full-year 2017 results on Jan 24, after market close. While its earnings for the quarter 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 a decline in expenses. Also, assets under management (AUM) witnessed growth. However, a slight decline in revenues acted as a headwind.
That said, the company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 12.5%.
However, activities of the company during the fourth quarter failed to encourage analysts to revise earnings estimates upward. As a result, the Zacks Consensus Estimate for earnings of $3.10 for the to-be-reported quarter decreased 1.3% over the last seven days. Nonetheless, the figure represents growth of 13.6% on a year-over-year basis.
The Zacks Consensus Estimate for sales is $3.03 billion for the quarter, which is expected to witness a decline of 1.2% year over year.
Notably, the company’s price performance has been quite encouraging. Ameriprise’s shares have gained 52.8% in 2017, outperforming the industry’s rally of 31.2%.
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 Q4 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 fourth quarter are low. This is because it does not have the right combination of the two key ingredients — a 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 -1.88%.
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 Q4 Results
Ameriprise has been consistently making efforts to improve its business. This is expected to have a positive impact on its 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 affect the segment’s performance. Nonetheless, as the company enters more normalized markets, margins in this segment are anticipated to improve to the range of 35-39%.
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.
Legg Mason, Inc. is slated to release results on Jan 24. It has an Earnings ESP of +0.18% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Associated Banc-Corp (ASB - Free Report) is slated to report results on Jan 25. It has an Earnings ESP of +0.64% and a Zacks Rank #2.
T. Rowe Price Group, Inc. (TROW - Free Report) has an Earnings ESP of +1.49% and a Zacks Rank of 2. It is scheduled to come up with results on Jan 30.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>