Ameriprise Financial’s (AMP - Free Report) third-quarter 2023 adjusted operating earnings (excluding unlocking) of $7.68 per share handily surpassed the Zacks Consensus Estimate of $7.58. The bottom line reflects a rise of 21% from the year-ago quarter.
Results were aided by revenue growth, along with higher assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses was a negative.
After considering significant items, net income (GAAP basis) was $872 million or $8.14 per share, down from $1.06 billion or $9.41 per share in the prior-year quarter. Our estimate for the metric was $803.8 million.
Revenues Improve, Expenses Rise
On an operating basis, adjusted total net revenues were $3.91 billion, up 10% year over year. The top line missed the Zacks Consensus Estimate of $3.96 billion.
On a GAAP basis, net revenues were $3.93 billion, growing 13% year over year.
Adjusted operating expenses totaled $2.96 billion, which increased 18% year over year. We had projected the same to be $3.09 billion.
Total AUM and AUA increased 12% year over year to $1.23 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.28 trillion.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased 1.5 million shares for $520 million.
Our Take
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line. However, Ameriprise is well-positioned for impressive top-line growth on the back of its robust AUM balance and business-restructuring initiatives.
Ameriprise currently carries a Zacks Rank #4 (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) third-quarter 2023 adjusted earnings of $10.91 per share handily surpassed the Zacks Consensus Estimate of $8.52. Also, the figure reflects an increase of 14.2% from the year-ago quarter.
BLK’s results benefited from a rise in revenues and higher non-operating income. Further, the AUM balance witnessed improvement. However, higher expenses acted as a headwind for BLK.
Invesco’s (IVZ - Free Report) third-quarter 2023 adjusted earnings of 35 cents per share lagged the Zacks Consensus Estimate of 36 cents. The bottom line, however, rose 2.9% from the prior-year quarter.
IVZ’s results were hurt by a rise in operating expenses and lower revenues. Nevertheless, an increase in the AUM balance on decent inflows aided the results to some extent.
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Ameriprise Financial’s (AMP - Free Report) third-quarter 2023 adjusted operating earnings (excluding unlocking) of $7.68 per share handily surpassed the Zacks Consensus Estimate of $7.58. The bottom line reflects a rise of 21% from the year-ago quarter.
Results were aided by revenue growth, along with higher assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses was a negative.
After considering significant items, net income (GAAP basis) was $872 million or $8.14 per share, down from $1.06 billion or $9.41 per share in the prior-year quarter. Our estimate for the metric was $803.8 million.
Revenues Improve, Expenses Rise
On an operating basis, adjusted total net revenues were $3.91 billion, up 10% year over year. The top line missed the Zacks Consensus Estimate of $3.96 billion.
On a GAAP basis, net revenues were $3.93 billion, growing 13% year over year.
Adjusted operating expenses totaled $2.96 billion, which increased 18% year over year. We had projected the same to be $3.09 billion.
Total AUM and AUA increased 12% year over year to $1.23 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.28 trillion.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased 1.5 million shares for $520 million.
Our Take
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line. However, Ameriprise is well-positioned for impressive top-line growth on the back of its robust AUM balance and business-restructuring initiatives.
Ameriprise currently carries a Zacks Rank #4 (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) third-quarter 2023 adjusted earnings of $10.91 per share handily surpassed the Zacks Consensus Estimate of $8.52. Also, the figure reflects an increase of 14.2% from the year-ago quarter.
BLK’s results benefited from a rise in revenues and higher non-operating income. Further, the AUM balance witnessed improvement. However, higher expenses acted as a headwind for BLK.
Invesco’s (IVZ - Free Report) third-quarter 2023 adjusted earnings of 35 cents per share lagged the Zacks Consensus Estimate of 36 cents. The bottom line, however, rose 2.9% from the prior-year quarter.
IVZ’s results were hurt by a rise in operating expenses and lower revenues. Nevertheless, an increase in the AUM balance on decent inflows aided the results to some extent.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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