Shares of Ameriprise Financial (AMP - Free Report) gained 1.4% in after-market trading following the release of its second-quarter 2022 results. Adjusted operating earnings per share of $5.81 surpassed the Zacks Consensus Estimate of $5.73. The bottom line reflects a rise of 10.2% 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) balances. However, an increase in expenses was a headwind.
After considering significant items, net income (GAAP basis) was $756 million or $6.61 per share, up from $591 million or $4.88 per share in the prior-year quarter.
Revenues Improve, Expenses Rise
On an operating basis, adjusted total net revenues were $3.48 billion, up 2.7% year over year. The top line lagged the Zacks Consensus Estimate of $3.51 billion. On a GAAP basis, net revenues were $3.51 billion, up 2.6%.
Adjusted operating expenses totaled $2.64 billion, up 1.3% from the prior-year quarter.
Driven by solid client flows in the Advice & Wealth Management segment, total AUM and AUA increased 3.4% year over year to $1.17 trillion.
Share Repurchases
In the reported quarter, Ameriprise repurchased 1.8 million shares for $458 million.
Our Take
Persistently rising expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line to some extent in the near term. Outflows in the company's Asset Management segment are another major concern. However, Ameriprise remains positioned for impressive top-line growth on the back of its robust AUM balance and business restructuring initiatives.
Ameriprise currently carries a Zacks Rank #5 (Strong Sell).
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) second-quarter 2022 adjusted earnings of $7.36 per share missed the Zacks Consensus Estimate of $8.33. The figure reflects a decrease of 30% from the year-ago quarter.
BLK’s results were adversely impacted by an unfavorable operating backdrop, leading to lower revenues and AUM balance. A modest decline in expenses was a tailwind.
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2022 earnings of 81 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line reflected a decline of 12.9% from the prior-year quarter.
SEIC’s results were hurt by a rise in expenses. However, growth in revenues and an increase in the AUM balance were tailwinds.
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Shares of Ameriprise Financial (AMP - Free Report) gained 1.4% in after-market trading following the release of its second-quarter 2022 results. Adjusted operating earnings per share of $5.81 surpassed the Zacks Consensus Estimate of $5.73. The bottom line reflects a rise of 10.2% 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) balances. However, an increase in expenses was a headwind.
After considering significant items, net income (GAAP basis) was $756 million or $6.61 per share, up from $591 million or $4.88 per share in the prior-year quarter.
Revenues Improve, Expenses Rise
On an operating basis, adjusted total net revenues were $3.48 billion, up 2.7% year over year. The top line lagged the Zacks Consensus Estimate of $3.51 billion. On a GAAP basis, net revenues were $3.51 billion, up 2.6%.
Adjusted operating expenses totaled $2.64 billion, up 1.3% from the prior-year quarter.
Driven by solid client flows in the Advice & Wealth Management segment, total AUM and AUA increased 3.4% year over year to $1.17 trillion.
Share Repurchases
In the reported quarter, Ameriprise repurchased 1.8 million shares for $458 million.
Our Take
Persistently rising expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line to some extent in the near term. Outflows in the company's Asset Management segment are another major concern. However, Ameriprise remains positioned for impressive top-line growth on the back of its robust AUM balance and business restructuring initiatives.
Ameriprise currently carries a Zacks Rank #5 (Strong Sell).
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) second-quarter 2022 adjusted earnings of $7.36 per share missed the Zacks Consensus Estimate of $8.33. The figure reflects a decrease of 30% from the year-ago quarter.
BLK’s results were adversely impacted by an unfavorable operating backdrop, leading to lower revenues and AUM balance. A modest decline in expenses was a tailwind.
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2022 earnings of 81 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line reflected a decline of 12.9% from the prior-year quarter.
SEIC’s results were hurt by a rise in expenses. However, growth in revenues and an increase in the AUM balance were tailwinds.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
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