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What's in the Cards for Ameriprise (AMP) in Q2 Earnings?
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Ameriprise Financial, Inc. (AMP - Free Report) is scheduled to report second-quarter 2020 results on Jul 29, after market close. Its earnings and revenues are anticipated to have witnessed a decline in the quarter on a year-over-year basis.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results reflected an improvement in adjusted revenues. However, a decline in assets under management (AUM) and assets under administration (AUA) balance as well as an increase in expenses were headwinds.
Ameriprise has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 11.7%.
However, the Zacks Consensus Estimate for its earnings of $2.94 for the to-be-reported quarter has been lowered 4.2% over the past seven days. The figure indicates a decline of 27.6% from the prior-year quarter’s reported number.
The consensus estimate for sales is pegged at $2.81 billion, which suggests a 13.5% decline from the year-ago quarter’s reported figure.
Before we take a look at what our quantitative model predicts, let’s check the factors that are likely to have influenced the company’s performance in the second quarter.
Estimates & Key Factors to Note
The Zacks Consensus Estimate for management and financial advice fees (constituting more than 55% of the company’s total net revenues) is pegged at $1.90 billion, which suggests a rise of 7.1% from the prior quarter’s reported number.
The consensus estimate for distribution fees of $484 million indicates a rise of 4.3% sequentially. Also, the consensus estimate for net investment income of $350 million suggests 6.7% growth from the previous quarter’s reported figure.
Notably, the company’s Asset Management segment has been recording net outflows over the past several quarters, which has been negatively impacting asset growth. However, the Advice & Wealth Management segment is likely to have recorded growth in assets in the second quarter, based on expectations of improved advisor productivity.
While Ameriprise’s initiatives to focus on cost management have resulted in controlled general and administrative expenses in the past, overall costs are anticipated to have remained elevated in the second quarter due to costs related to technology upgrades.
Notably, management expects its adjusted operating earnings in the second quarter to include a reversal of the $144-million tax benefit that was recorded in the first quarter.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether Ameriprise will be able to beat the Zacks Consensus Estimate this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better, which is required to be confident of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ameriprise has an Earnings ESP of 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are a few finance stocks that you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat in their upcoming releases.
UMB Financial Corporation (UMBF - Free Report) is scheduled to release quarterly results on Jul 28. The company currently has an Earnings ESP of +33.72% and a Zacks Rank of 3.
The Earnings ESP for Moody’s Corporation (MCO - Free Report) is +2.14% and it carries a Zacks Rank of 3 at present. The company is slated to report quarterly numbers on Jul 30.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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What's in the Cards for Ameriprise (AMP) in Q2 Earnings?
Ameriprise Financial, Inc. (AMP - Free Report) is scheduled to report second-quarter 2020 results on Jul 29, after market close. Its earnings and revenues are anticipated to have witnessed a decline in the quarter on a year-over-year basis.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results reflected an improvement in adjusted revenues. However, a decline in assets under management (AUM) and assets under administration (AUA) balance as well as an increase in expenses were headwinds.
Ameriprise has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 11.7%.
Ameriprise Financial, Inc. Price and EPS Surprise
Ameriprise Financial, Inc. price-eps-surprise | Ameriprise Financial, Inc. Quote
However, the Zacks Consensus Estimate for its earnings of $2.94 for the to-be-reported quarter has been lowered 4.2% over the past seven days. The figure indicates a decline of 27.6% from the prior-year quarter’s reported number.
The consensus estimate for sales is pegged at $2.81 billion, which suggests a 13.5% decline from the year-ago quarter’s reported figure.
Before we take a look at what our quantitative model predicts, let’s check the factors that are likely to have influenced the company’s performance in the second quarter.
Estimates & Key Factors to Note
The Zacks Consensus Estimate for management and financial advice fees (constituting more than 55% of the company’s total net revenues) is pegged at $1.90 billion, which suggests a rise of 7.1% from the prior quarter’s reported number.
The consensus estimate for distribution fees of $484 million indicates a rise of 4.3% sequentially. Also, the consensus estimate for net investment income of $350 million suggests 6.7% growth from the previous quarter’s reported figure.
Notably, the company’s Asset Management segment has been recording net outflows over the past several quarters, which has been negatively impacting asset growth. However, the Advice & Wealth Management segment is likely to have recorded growth in assets in the second quarter, based on expectations of improved advisor productivity.
While Ameriprise’s initiatives to focus on cost management have resulted in controlled general and administrative expenses in the past, overall costs are anticipated to have remained elevated in the second quarter due to costs related to technology upgrades.
Notably, management expects its adjusted operating earnings in the second quarter to include a reversal of the $144-million tax benefit that was recorded in the first quarter.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether Ameriprise will be able to beat the Zacks Consensus Estimate this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better, which is required to be confident of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ameriprise has an Earnings ESP of 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks to Consider
Here are a few finance stocks that you may want to consider, as according to our model, these have the right combination of elements to post an earnings beat in their upcoming releases.
UMB Financial Corporation (UMBF - Free Report) is scheduled to release quarterly results on Jul 28. The company currently has an Earnings ESP of +33.72% and a Zacks Rank of 3.
Hercules Capital, Inc. (HTGC - Free Report) is scheduled to release quarterly results on Jul 30. The company has an Earnings ESP of +3.66% and currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Earnings ESP for Moody’s Corporation (MCO - Free Report) is +2.14% and it carries a Zacks Rank of 3 at present. The company is slated to report quarterly numbers on Jul 30.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>