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Ameriprise (AMP) Q1 Earnings Beat on Higher Revenues & AUM
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Ameriprise Financial Inc.’s (AMP - Free Report) first-quarter 2018 adjusted operating earnings per share of $3.70 comfortably surpassed the Zacks Consensus Estimate of $3.47. Also, the figure was 37% above the year-ago quarter level.
Results benefited from an improvement in revenues. Also, growth in assets under management (AUM) and assets under administration (AUA) supported the earnings. However, a rise in expenses was an undermining factor.
After taking into consideration several significant items, net income came in at $594 million or $3.91 per share, up from $403 million or $2.52 per share in the prior-year quarter.
Revenues and Costs Rise
Net revenues (on a GAAP basis) were $3.17 billion for the quarter, reflecting 8% increase from the year-ago quarter. Also, it surpassed the Zacks Consensus Estimate of $3.12 billion.
On an operating basis, total net revenues (excluding 12b-1 impact) came in at $3.10 billion, increasing 9% from the prior-year quarter.
Adjusted operating expenses came in at $2.45 billion, increasing 4% from the prior-year quarter.
Strong AUM & AUA
As of Mar 31, 2018, total AUM and AUA was $887.23 billion, reflecting an increase of 9% year over year, primarily driven by Ameriprise advisor client net inflows.
Capital Deployment Activities
Concurrent with the earnings release, Ameriprise announced a quarterly cash dividend of 90 cents per share, representing a hike of 8% from the prior payout. The dividend will be paid on May 18 to shareholders on record as of May 7.
In the reported quarter, Ameriprise repurchased 2.4 million shares for $387 million.
Our Take
Although the company has been taking initiatives to strengthen expense management, advertising campaign and technology upgrades are likely to keep expenses elevated in the near term. Also, outflows in the company's Asset Management segment continue to be a major near-term concern. However, its efforts toward modifying its product and service-offering capacity are expected to support top-line growth in the quarters ahead.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
Performance & Upcoming Release Date of Other Asset Managers
BlackRock’s (BLK - Free Report) first-quarter 2018 adjusted earnings came in at $6.70 per share, which handily outpaced the Zacks Consensus Estimate of $6.42. Results benefited from an improvement in revenues, rise in AUM and steady long-term inflows. However, increase in operating expenses acted as a headwind.
The Blackstone Group L.P. (BX - Free Report) reported first-quarter 2018 economic net income of 65 cents per share, which handily surpassed the Zacks Consensus Estimate of 46 cents. The quarter saw an improvement AUM, mainly driven by inflows. However, lower revenues and a rise in expenses were the undermining factors.
Invesco Ltd. (IVZ - Free Report) is slated to report first-quarter results on Apr 26.
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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
Ameriprise (AMP) Q1 Earnings Beat on Higher Revenues & AUM
Ameriprise Financial Inc.’s (AMP - Free Report) first-quarter 2018 adjusted operating earnings per share of $3.70 comfortably surpassed the Zacks Consensus Estimate of $3.47. Also, the figure was 37% above the year-ago quarter level.
Results benefited from an improvement in revenues. Also, growth in assets under management (AUM) and assets under administration (AUA) supported the earnings. However, a rise in expenses was an undermining factor.
After taking into consideration several significant items, net income came in at $594 million or $3.91 per share, up from $403 million or $2.52 per share in the prior-year quarter.
Revenues and Costs Rise
Net revenues (on a GAAP basis) were $3.17 billion for the quarter, reflecting 8% increase from the year-ago quarter. Also, it surpassed the Zacks Consensus Estimate of $3.12 billion.
On an operating basis, total net revenues (excluding 12b-1 impact) came in at $3.10 billion, increasing 9% from the prior-year quarter.
Adjusted operating expenses came in at $2.45 billion, increasing 4% from the prior-year quarter.
Strong AUM & AUA
As of Mar 31, 2018, total AUM and AUA was $887.23 billion, reflecting an increase of 9% year over year, primarily driven by Ameriprise advisor client net inflows.
Capital Deployment Activities
Concurrent with the earnings release, Ameriprise announced a quarterly cash dividend of 90 cents per share, representing a hike of 8% from the prior payout. The dividend will be paid on May 18 to shareholders on record as of May 7.
In the reported quarter, Ameriprise repurchased 2.4 million shares for $387 million.
Our Take
Although the company has been taking initiatives to strengthen expense management, advertising campaign and technology upgrades are likely to keep expenses elevated in the near term. Also, outflows in the company's Asset Management segment continue to be a major near-term concern. However, its efforts toward modifying its product and service-offering capacity are expected to support top-line growth in the quarters ahead.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise | Ameriprise Financial, Inc. Quote
Ameriprise carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Upcoming Release Date of Other Asset Managers
BlackRock’s (BLK - Free Report) first-quarter 2018 adjusted earnings came in at $6.70 per share, which handily outpaced the Zacks Consensus Estimate of $6.42. Results benefited from an improvement in revenues, rise in AUM and steady long-term inflows. However, increase in operating expenses acted as a headwind.
The Blackstone Group L.P. (BX - Free Report) reported first-quarter 2018 economic net income of 65 cents per share, which handily surpassed the Zacks Consensus Estimate of 46 cents. The quarter saw an improvement AUM, mainly driven by inflows. However, lower revenues and a rise in expenses were the undermining factors.
Invesco Ltd. (IVZ - Free Report) is slated to report first-quarter results on Apr 26.
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.
See This Ticker Free >>