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Ameriprise Financial’s (AMP - Free Report) third-quarter 2020 adjusted operating earnings per share of $1.47 surpassed the Zacks Consensus Estimate of $1.35. However, the bottom line was 64.3% lower than the year-ago quarter.
In the quarter, the company recorded a decline in revenues along with higher expenses, which were the undermining factors. However, an improvement in assets under management (AUM) and assets under administration (AUA) balance were tailwinds.
After taking into consideration significant items, net loss (GAAP basis) was $140 million or $1.14 per share against net income of $543 million or $4.04 per share in the prior-year quarter.
Revenues Decline, Expenses Rise
On an operating basis, total adjusted net revenues were $2.98 billion, down 9.8% year over year. The figure marginally lagged the Zacks Consensus Estimate of $2.99 billion. On a GAAP basis, net revenues were $3 billion, down 9.5% year over year.
Adjusted operating expenses were $2.75 billion, increasing 4% from the prior-year quarter. Excluding unlocking and Auto & Home, adjusted operating expenses declined marginally year over year to $2.31 billion.
AUM & AUA Improve
As of Sep 30, 2020, total AUM and AUA was $998.61 billion, up 8.4% year over year.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased 2.1 million shares.
Notably, in September 2020, the company announced an additional repurchase plan worth $2.5 billion, which will expire in September 2022.
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 aid revenues.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) third-quarter 2020 adjusted earnings of $9.22 per share surpassed the Zacks Consensus Estimate of $7.81. The figure reflects a rise of 29% from the year-ago quarter’s number.
Cohen & Steers’ (CNS - Free Report) third-quarter 2020 adjusted earnings of 67 cents per share surpassed the Zacks Consensus Estimate of 60 cents. Moreover, the bottom line was 3.1% higher than the year-ago reported figure.
Affiliated Managers Group Inc.’s (AMG - Free Report) third-quarter 2020 economic earnings of $3.27 per share surpassed the Zacks Consensus Estimate of $2.86. Also, the bottom line grew 3.5% year over year.
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Ameriprise (AMP) Q3 Earnings Beat, Revenues Decline Y/Y
Ameriprise Financial’s (AMP - Free Report) third-quarter 2020 adjusted operating earnings per share of $1.47 surpassed the Zacks Consensus Estimate of $1.35. However, the bottom line was 64.3% lower than the year-ago quarter.
In the quarter, the company recorded a decline in revenues along with higher expenses, which were the undermining factors. However, an improvement in assets under management (AUM) and assets under administration (AUA) balance were tailwinds.
After taking into consideration significant items, net loss (GAAP basis) was $140 million or $1.14 per share against net income of $543 million or $4.04 per share in the prior-year quarter.
Revenues Decline, Expenses Rise
On an operating basis, total adjusted net revenues were $2.98 billion, down 9.8% year over year. The figure marginally lagged the Zacks Consensus Estimate of $2.99 billion. On a GAAP basis, net revenues were $3 billion, down 9.5% year over year.
Adjusted operating expenses were $2.75 billion, increasing 4% from the prior-year quarter. Excluding unlocking and Auto & Home, adjusted operating expenses declined marginally year over year to $2.31 billion.
AUM & AUA Improve
As of Sep 30, 2020, total AUM and AUA was $998.61 billion, up 8.4% year over year.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased 2.1 million shares.
Notably, in September 2020, the company announced an additional repurchase plan worth $2.5 billion, which will expire in September 2022.
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 aid revenues.
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 #2 (Buy). 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) third-quarter 2020 adjusted earnings of $9.22 per share surpassed the Zacks Consensus Estimate of $7.81. The figure reflects a rise of 29% from the year-ago quarter’s number.
Cohen & Steers’ (CNS - Free Report) third-quarter 2020 adjusted earnings of 67 cents per share surpassed the Zacks Consensus Estimate of 60 cents. Moreover, the bottom line was 3.1% higher than the year-ago reported figure.
Affiliated Managers Group Inc.’s (AMG - Free Report) third-quarter 2020 economic earnings of $3.27 per share surpassed the Zacks Consensus Estimate of $2.86. Also, the bottom line grew 3.5% year over year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>