We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ameriprise Financial’s (AMP - Free Report) third-quarter 2021 adjusted operating earnings per share of $5.91 surpassed the Zacks Consensus Estimate of $5.46. The bottom line reflects a rise of 38.4% from the year-ago quarter.
Results were aided by growth in revenues, partly offset by higher expenses. Improvements in assets under management (AUM) and assets under administration (AUA) balance were tailwinds.
After considering significant items, net income (GAAP basis) was $1.03 billion or $8.65 per share against a net loss of $140 million or $1.14 per share in the prior-year quarter.
Revenues Improve, Expenses Rise
On an operating basis, total adjusted net revenues (excluding unlocking) were $3.50 billion, up 17.4% year over year. The top line missed the Zacks Consensus Estimate of $3.54 billion. On a GAAP basis, net revenues were $2.90 billion, down 3.3% year over year.
Adjusted operating expenses (excluding unlocking) totaled $2.64 billion, up 14.2% from the prior-year quarter.
AUM & AUA Improve
Driven by solid client flows in the Wealth and Asset Management segments and market appreciation, total AUM and AUA were $1.21 trillion, up 20.8% year over year.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased shares worth $533 million.
Conclusion
In July, Ameriprise closed its fixed annuity reinsurance transaction for RiverSource Life Insurance Company with Global Atlantic’s subsidiary, Commonwealth Annuity and Life Insurance Company.
The company’s solid AUM balance, diversified investment portfolio and business-restructuring efforts are expected to keep aiding profitability. However, rising expenses make us apprehensive.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) third-quarter 2021 adjusted earnings of $10.95 per share outpaced the Zacks Consensus Estimate of $9.63. The figure reflects a rise of 18.8% from the year-ago quarter’s number.
Blackstone’s (BX - Free Report) third-quarter 2021 distributable earnings of $1.28 per share comfortably surpassed the Zacks Consensus Estimate of 93 cents. The figure reflects a significant rise from 63 cents recorded in the prior-year quarter.
SEI Investments Co.’s (SEIC - Free Report) third-quarter 2021 earnings of 97 cents per share were in line with the Zacks Consensus Estimate. The bottom line reflected 29% growth from the prior-year quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ameriprise (AMP) Q3 Earnings Beat, Revenues & Costs Rise Y/Y
Ameriprise Financial’s (AMP - Free Report) third-quarter 2021 adjusted operating earnings per share of $5.91 surpassed the Zacks Consensus Estimate of $5.46. The bottom line reflects a rise of 38.4% from the year-ago quarter.
Results were aided by growth in revenues, partly offset by higher expenses. Improvements in assets under management (AUM) and assets under administration (AUA) balance were tailwinds.
After considering significant items, net income (GAAP basis) was $1.03 billion or $8.65 per share against a net loss of $140 million or $1.14 per share in the prior-year quarter.
Revenues Improve, Expenses Rise
On an operating basis, total adjusted net revenues (excluding unlocking) were $3.50 billion, up 17.4% year over year. The top line missed the Zacks Consensus Estimate of $3.54 billion. On a GAAP basis, net revenues were $2.90 billion, down 3.3% year over year.
Adjusted operating expenses (excluding unlocking) totaled $2.64 billion, up 14.2% from the prior-year quarter.
AUM & AUA Improve
Driven by solid client flows in the Wealth and Asset Management segments and market appreciation, total AUM and AUA were $1.21 trillion, up 20.8% year over year.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased shares worth $533 million.
Conclusion
In July, Ameriprise closed its fixed annuity reinsurance transaction for RiverSource Life Insurance Company with Global Atlantic’s subsidiary, Commonwealth Annuity and Life Insurance Company.
The company’s solid AUM balance, diversified investment portfolio and business-restructuring efforts are expected to keep aiding profitability. However, rising expenses make us apprehensive.
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 Asset Managers
BlackRock, Inc.’s (BLK - Free Report) third-quarter 2021 adjusted earnings of $10.95 per share outpaced the Zacks Consensus Estimate of $9.63. The figure reflects a rise of 18.8% from the year-ago quarter’s number.
Blackstone’s (BX - Free Report) third-quarter 2021 distributable earnings of $1.28 per share comfortably surpassed the Zacks Consensus Estimate of 93 cents. The figure reflects a significant rise from 63 cents recorded in the prior-year quarter.
SEI Investments Co.’s (SEIC - Free Report) third-quarter 2021 earnings of 97 cents per share were in line with the Zacks Consensus Estimate. The bottom line reflected 29% growth from the prior-year quarter.