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Ameriprise Financial (AMP) Q1 Earnings Beat, Revenues Rise Y/Y

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Ameriprise Financial’s (AMP - Free Report) first-quarter 2021 adjusted operating earnings per share of $5.43 handily surpassed the Zacks Consensus Estimate of $4.73. Moreover, the bottom line comes in 27% higher than the year-ago quarter.

Results were aided by growth in revenues, partly offset by higher expenses. Moreover, an improvement in assets under management (AUM) and assets under administration (AUA) balance were tailwinds.

After taking into consideration significant items, net income (GAAP basis) was $437 million or $3.58 per share, down substantially from the $2.04 billion or $15.88 per share in the prior-year quarter.

Revenues Improve, Expenses Rise

On an operating basis, total adjusted net revenues were $3.25 billion, up 10.3% year over year. The top line, however, lagged the Zacks Consensus Estimate of $3.29 billion. On a GAAP basis, net revenues came in at $3.35 billion, up 12% year over year.

Adjusted operating expenses totaled $2.48 billion, flaring up 7.7% from the prior-year quarter.

AUM & AUA Improve

Driven by strong client flows in Wealth and Asset Management segment and market appreciation, total AUM and AUA was a record $1.14 trillion, up 36% year over year.

Dividend Hike

Concurrent with the earnings release, Ameriprise announced a quarterly cash dividend of $1.13 per share, representing a hike of 9% from the prior payout. This dividend will be paid out on May 21 to shareholders of record as of May 10.

Share Repurchase Update

During the first quarter, Ameriprise repurchased shares worth $491 million.

Our Take

Solid AUM balance and diversified investment portfolio are anticipated to continue supporting the company. Moreover, its business-restructuring efforts will likely aid profitability. Nonetheless, rising expenses, mainly due to the company’s advertising campaign and technology upgrades, make us apprehensive.

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 Financial 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 Asset Managers

BlackRock, Inc.’s (BLK - Free Report) first-quarter 2021 adjusted earnings of $7.77 per share outpaced the Zacks Consensus Estimate of $7.64. The figure reflected a rise of 17.7% from the year-ago quarter’s number.

Blackstone’s (BX - Free Report) distributable earnings of 96 cents per share surpassed the Zacks Consensus Estimate of 72 cents. The reported figure also marked a significant rise from the 46 cents recorded in the prior-year quarter.

SEI Investments Co.’s (SEIC - Free Report) earnings of 89 cents per share missed the Zacks Consensus Estimate by a penny. However, the bottom line underlined 24% growth from the prior-year quarter.

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