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Ameriprise (AMP) Q2 Earnings Beat on Higher Revenues & AUM
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Ameriprise Financial Inc.’s (AMP - Free Report) second-quarter 2018 adjusted operating earnings per share of $3.60 comfortably surpassed the Zacks Consensus Estimate of $3.51. Further, the figure was 29% 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 earnings. However, a rise in expenses was an undermining factor.
After taking into consideration several significant items, net income was $462 million or $3.10 per share, up from $393 million or $2.50 per share in the prior-year quarter.
Revenues Improve, Costs Rise
Net revenues (on a GAAP basis) were nearly $3.20 billion for the quarter, reflecting an increase of 6% from the year-ago quarter. Moreover, it surpassed the Zacks Consensus Estimate of $3.09 billion.
On an operating basis, total adjusted net revenues came in at $3.15 billion, increasing 6% from the prior-year quarter.
Adjusted operating expenses came in at $2.51 billion, rising 5% from the prior-year quarter.
Strong AUM & AUA
As of Jun 30, 2018, total AUM and AUA was $890.91 billion, reflecting an increase of 7% year over year, primarily driven by Ameriprise advisor client net inflows.
Share Repurchases
In the reported quarter, Ameriprise repurchased 2.9 million shares for $400 million.
Our Take
Ameriprise’s efforts toward modifying its product and service-offering capacity are expected to support top-line growth in the quarters ahead. Further, its steady capital deployment activities reflect a strong balance sheet position. However, despite the fact that 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.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
Performance & Upcoming Release Date of Other Asset Managers
BlackRock’s (BLK - Free Report) second-quarter 2018 adjusted earnings of $6.66 per share outpaced the Zacks Consensus Estimate of $6.60. Results benefited from an improvement in revenues, rise in assets under management and steady long-term inflows. However, an increase in operating expenses acted as a headwind.
The Blackstone Group L.P. (BX - Free Report) reported second-quarter 2018 economic net income (ENI) of 90 cents per share, which handily outpaced the Zacks Consensus Estimate of 71 cents. The quarter saw a substantial jump in revenues and growth in assets under management, which was mainly driven by inflows. However, rise in expenses was the undermining factor.
Invesco Ltd. (IVZ - Free Report) is slated to report second-quarter results on Jul 26.
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It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Ameriprise (AMP) Q2 Earnings Beat on Higher Revenues & AUM
Ameriprise Financial Inc.’s (AMP - Free Report) second-quarter 2018 adjusted operating earnings per share of $3.60 comfortably surpassed the Zacks Consensus Estimate of $3.51. Further, the figure was 29% 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 earnings. However, a rise in expenses was an undermining factor.
After taking into consideration several significant items, net income was $462 million or $3.10 per share, up from $393 million or $2.50 per share in the prior-year quarter.
Revenues Improve, Costs Rise
Net revenues (on a GAAP basis) were nearly $3.20 billion for the quarter, reflecting an increase of 6% from the year-ago quarter. Moreover, it surpassed the Zacks Consensus Estimate of $3.09 billion.
On an operating basis, total adjusted net revenues came in at $3.15 billion, increasing 6% from the prior-year quarter.
Adjusted operating expenses came in at $2.51 billion, rising 5% from the prior-year quarter.
Strong AUM & AUA
As of Jun 30, 2018, total AUM and AUA was $890.91 billion, reflecting an increase of 7% year over year, primarily driven by Ameriprise advisor client net inflows.
Share Repurchases
In the reported quarter, Ameriprise repurchased 2.9 million shares for $400 million.
Our Take
Ameriprise’s efforts toward modifying its product and service-offering capacity are expected to support top-line growth in the quarters ahead. Further, its steady capital deployment activities reflect a strong balance sheet position. However, despite the fact that 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.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise | Ameriprise Financial, Inc. Quote
Ameriprise currently carries a Zacks Rank #2 (Buy). 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) second-quarter 2018 adjusted earnings of $6.66 per share outpaced the Zacks Consensus Estimate of $6.60. Results benefited from an improvement in revenues, rise in assets under management and steady long-term inflows. However, an increase in operating expenses acted as a headwind.
The Blackstone Group L.P. (BX - Free Report) reported second-quarter 2018 economic net income (ENI) of 90 cents per share, which handily outpaced the Zacks Consensus Estimate of 71 cents. The quarter saw a substantial jump in revenues and growth in assets under management, which was mainly driven by inflows. However, rise in expenses was the undermining factor.
Invesco Ltd. (IVZ - Free Report) is slated to report second-quarter results on Jul 26.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>