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Ameriprise (AMP) Q2 Earnings Lag Estimates, Revenues Decline

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Ameriprise Financial’s (AMP - Free Report) second-quarter 2020 adjusted operating earnings per share of $2.64 lagged the Zacks Consensus Estimate of $2.94. Also, the figure was 35% lower than the year-ago quarter.

Results were primarily hurt by a decline in revenues, partly offset by lower expenses. However, an improvement in assets under management (AUM) and assets under administration (AUA) balance were tailwinds.

After taking into consideration significant items, net loss was $539 million or $4.31 per share against net income of $492 million or $3.57 per share in the prior-year quarter.

Revenues & Expenses Decline

On an operating basis, total adjusted net revenues were $2.77 billion, down 14.8% year over year. The figure lagged the Zacks Consensus Estimate of $2.81 billion. On a GAAP basis, net revenues were $2.71 billion, down 16.4% year over year.

Adjusted operating expenses (excluding Auto & Home) were $2.19 billion, decreasing 4.6% from the prior-year quarter.

AUM & AUA Improve

As of Jun 30, 2020, total AUM and AUA was $946.78 billion, up 3.4% year over year.

Share Repurchase Update

In the reported quarter, Ameriprise repurchased 1.7 million shares.

Our Take

Solid AUM balance and diversified investment portfolio are expected to continue supporting the company. Moreover, its business-restructuring efforts (sale of the Home & Auto division and launch of the federal savings bank) will likely support revenues. However, significant outflows in the Asset Management segment are expected to hamper financials.

Ameriprise Financial, Inc. Price, Consensus and EPS Surprise

 

Ameriprise Financial, Inc. Price, Consensus and EPS Surprise

Ameriprise Financial, Inc. price-consensus-eps-surprise-chart | Ameriprise Financial, Inc. Quote

Ameriprise currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

BlackRock, Inc.’s (BLK - Free Report) second-quarter 2020 adjusted earnings of $7.85 per share comfortably surpassed the Zacks Consensus Estimate of $6.90. The figure reflects a rise of 22.5% from the year-ago number.

Cohen & Steers’ (CNS - Free Report) second-quarter 2020 adjusted earnings of 54 cents per share missed the Zacks Consensus Estimate of 55 cents. Moreover, the bottom line was 12.9% lower than the year-ago reported figure.

Affiliated Managers Group Inc.’s (AMG - Free Report) second-quarter 2020 economic earnings of $2.74 per share surpassed the Zacks Consensus Estimate of $2.70. However, the bottom line declined 17.7% year over year.

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