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Ameriprise (AMP) Down 1.2% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Ameriprise Financial Services (AMP - Free Report) . Shares have lost about 1.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ameriprise due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ameriprise’s 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 were $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 the Wealth and Asset Management segment and market appreciation, total AUM and AUA was a record $1.14 trillion, up 36% year over year.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Ameriprise has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ameriprise has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Ameriprise (AMP) Down 1.2% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Ameriprise Financial Services (AMP - Free Report) . Shares have lost about 1.2% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ameriprise due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ameriprise Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Ameriprise’s 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 were $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 the Wealth and Asset Management segment and market appreciation, total AUM and AUA was a record $1.14 trillion, up 36% year over year.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Ameriprise has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ameriprise has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.