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Ameriprise (AMP) Beats on Q4 Earnings as Revenues Rise Y/Y
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Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2021 adjusted operating earnings per share of $6.15 surpassed the Zacks Consensus Estimate of $5.77. The bottom line reflects a rise of 35.8% from the year-ago quarter.
Results were aided by growth in revenues, partly offset by higher expenses. Improvements in the assets under management (AUM) and assets under administration (AUA) balance were tailwinds.
Notably, in November 2021, Ameriprise completed the deal with Canada-based BMO Financial Group to take over its EMEA asset management operations. The all-cash transaction, valued at £615 million ($829 million), has helped strengthen Ameriprise’s wealth and asset management businesses.
After considering significant items, net income (GAAP basis) was $701 million or $5.96 per share, up from $177 million or $1.43 per share in the prior-year quarter.
In 2021, adjusted operating earnings per share of $22.70 surpassed the Zacks Consensus Estimate of $22.30. The bottom line increased 61.2% from 2020. Net income (GAAP basis) was $2.76 billion or $23.00 per share, up from $1.53 billion or $12.20 per share in the previous year.
Revenues Improve, Expenses Rise
On an operating basis, total adjusted net revenues were $3.71 billion, up 18.1% year over year. The top line beat the Zacks Consensus Estimate of $3.56 billion. On a GAAP basis, net revenues were $3.76 billion, up 18.1% year over year.
Adjusted operating expenses totaled $2.81 billion, up 14.1% from the prior-year quarter.
AUM & AUA Improve
Driven by solid client flows in the Advice & Wealth and the Asset Management segments (including the BMO-related flows), total AUM and AUA were $1.42 trillion, up 28.7% year over year. BMO EMEA added $136 billion of acquired assets.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased shares worth $499 million.
Concurrent with the earnings release, the company announced an authorization to repurchase up to an additional $3 billion of its common stock through Mar 31, 2024.
Our Take
Ameriprise’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) fourth-quarter 2021 adjusted earnings of $10.42 per share outpaced the Zacks Consensus Estimate of $10.23. The figure reflects a rise of 2.4% from the year-ago quarter. Net income attributable to BlackRock (on a GAAP basis) was $1.64 billion, up 6.1% from the prior-year quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in AUM balance.
Invesco’s (IVZ - Free Report) fourth-quarter 2021 adjusted earnings of 86 cents per share handily outpaced the Zacks Consensus Estimate of 76 cents. The bottom line grew 19.4% from the prior-year quarter. On a GAAP basis, Invesco’s net income attributable to common shareholders was $426.8 million or 92 cents per share, up from $211.1 million or 46 cents per share reported a year ago.
IVZ’s results reflected an improvement in revenues and solid growth in AUM balance. However, a rise in operating expenses was a headwind.
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Ameriprise (AMP) Beats on Q4 Earnings as Revenues Rise Y/Y
Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2021 adjusted operating earnings per share of $6.15 surpassed the Zacks Consensus Estimate of $5.77. The bottom line reflects a rise of 35.8% from the year-ago quarter.
Results were aided by growth in revenues, partly offset by higher expenses. Improvements in the assets under management (AUM) and assets under administration (AUA) balance were tailwinds.
Notably, in November 2021, Ameriprise completed the deal with Canada-based BMO Financial Group to take over its EMEA asset management operations. The all-cash transaction, valued at £615 million ($829 million), has helped strengthen Ameriprise’s wealth and asset management businesses.
After considering significant items, net income (GAAP basis) was $701 million or $5.96 per share, up from $177 million or $1.43 per share in the prior-year quarter.
In 2021, adjusted operating earnings per share of $22.70 surpassed the Zacks Consensus Estimate of $22.30. The bottom line increased 61.2% from 2020. Net income (GAAP basis) was $2.76 billion or $23.00 per share, up from $1.53 billion or $12.20 per share in the previous year.
Revenues Improve, Expenses Rise
On an operating basis, total adjusted net revenues were $3.71 billion, up 18.1% year over year. The top line beat the Zacks Consensus Estimate of $3.56 billion. On a GAAP basis, net revenues were $3.76 billion, up 18.1% year over year.
Adjusted operating expenses totaled $2.81 billion, up 14.1% from the prior-year quarter.
AUM & AUA Improve
Driven by solid client flows in the Advice & Wealth and the Asset Management segments (including the BMO-related flows), total AUM and AUA were $1.42 trillion, up 28.7% year over year. BMO EMEA added $136 billion of acquired assets.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased shares worth $499 million.
Concurrent with the earnings release, the company announced an authorization to repurchase up to an additional $3 billion of its common stock through Mar 31, 2024.
Our Take
Ameriprise’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) fourth-quarter 2021 adjusted earnings of $10.42 per share outpaced the Zacks Consensus Estimate of $10.23. The figure reflects a rise of 2.4% from the year-ago quarter. Net income attributable to BlackRock (on a GAAP basis) was $1.64 billion, up 6.1% from the prior-year quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in AUM balance.
Invesco’s (IVZ - Free Report) fourth-quarter 2021 adjusted earnings of 86 cents per share handily outpaced the Zacks Consensus Estimate of 76 cents. The bottom line grew 19.4% from the prior-year quarter. On a GAAP basis, Invesco’s net income attributable to common shareholders was $426.8 million or 92 cents per share, up from $211.1 million or 46 cents per share reported a year ago.
IVZ’s results reflected an improvement in revenues and solid growth in AUM balance. However, a rise in operating expenses was a headwind.