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Why is Q2 Earnings Beat Less Likely for Ameriprise (AMP)?
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Ameriprise Financial, Inc. (AMP - Free Report) is scheduled to report second-quarter 2022 results on Jul 26, after market close. Its revenues and earnings in the to-be-reported quarter are anticipated to have witnessed a rise on a year-over-year basis.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Higher revenues, along with improvements in assets under management (AUM) and assets under administration (AUA) balances, supported the results. However, a rise in expenses was a headwind.
Ameriprise has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 4.1%.
The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at $5.73 per share, which indicates a rise of 8.7% from the prior-year quarter’s reported number. The consensus estimate has been unchanged over the past seven days.
The consensus estimate for total sales is pegged at $3.51 billion, which indicates a 3.6% rise from the year-ago quarter’s reported figure.
Estimates & Key Factors to Note for Q2
The Zacks Consensus Estimate for management and financial advice fees (constituting more than 60% of the company’s total net revenues) is pegged at $2.32 billion, which suggests a fall of 5.5% from the prior quarter’s reported number.
The consensus estimate for distribution fees of $459 million indicates a rise of 2.9% sequentially. The consensus estimate for premiums, policy and contract charges is pegged at $331 million, indicating a sequential decline of 10.1%.
The consensus estimate for net investment income of $270 million suggests a rise of 3.4% from the previous quarter’s reported figure. However, the consensus mark for other revenues of $107 million indicates a 13% sequential decline.
Ameriprise’s Asset Management segment has been recording net outflows over the past few years, which has negatively impacted asset growth. Nevertheless, in 2020 and 2021, the segment recorded overall net inflows. Given the expectation of a similar trend in the to-be-reported quarter, the segment’s asset balances are likely to have been positively impacted.
Based on the expectations of improved advisor productivity, the Advice & Wealth Management segment is expected to have recorded growth in assets in the second quarter.
While Ameriprise’s initiatives to focus on cost management have resulted in controlled general and administration expenses in the past, overall costs are anticipated to have been elevated in the to-be-reported quarter due to costs related to technology upgrades.
Earnings Whispers
According to our quantitative model, the chances of Ameriprise beating the Zacks Consensus Estimate this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better — which is required to be confident of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ameriprise has an Earnings ESP of -0.88%.
Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
A couple of finance stocks, which you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Raymond James Financial (RJF - Free Report) and LPL Financial (LPLA - Free Report) .
The Earnings ESP for RJF is +1.02%. Raymond James carries a Zacks Rank #3 at present. RJF is slated to report results on Jul 27.
LPL Financial is scheduled to release quarterly results on Aug 2. LPLA currently sports a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of +0.13%. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Why is Q2 Earnings Beat Less Likely for Ameriprise (AMP)?
Ameriprise Financial, Inc. (AMP - Free Report) is scheduled to report second-quarter 2022 results on Jul 26, after market close. Its revenues and earnings in the to-be-reported quarter are anticipated to have witnessed a rise on a year-over-year basis.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Higher revenues, along with improvements in assets under management (AUM) and assets under administration (AUA) balances, supported the results. However, a rise in expenses was a headwind.
Ameriprise has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 4.1%.
Ameriprise Financial, Inc. Price and EPS Surprise
Ameriprise Financial, Inc. price-eps-surprise | Ameriprise Financial, Inc. Quote
The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at $5.73 per share, which indicates a rise of 8.7% from the prior-year quarter’s reported number. The consensus estimate has been unchanged over the past seven days.
The consensus estimate for total sales is pegged at $3.51 billion, which indicates a 3.6% rise from the year-ago quarter’s reported figure.
Estimates & Key Factors to Note for Q2
The Zacks Consensus Estimate for management and financial advice fees (constituting more than 60% of the company’s total net revenues) is pegged at $2.32 billion, which suggests a fall of 5.5% from the prior quarter’s reported number.
The consensus estimate for distribution fees of $459 million indicates a rise of 2.9% sequentially. The consensus estimate for premiums, policy and contract charges is pegged at $331 million, indicating a sequential decline of 10.1%.
The consensus estimate for net investment income of $270 million suggests a rise of 3.4% from the previous quarter’s reported figure. However, the consensus mark for other revenues of $107 million indicates a 13% sequential decline.
Ameriprise’s Asset Management segment has been recording net outflows over the past few years, which has negatively impacted asset growth. Nevertheless, in 2020 and 2021, the segment recorded overall net inflows. Given the expectation of a similar trend in the to-be-reported quarter, the segment’s asset balances are likely to have been positively impacted.
Based on the expectations of improved advisor productivity, the Advice & Wealth Management segment is expected to have recorded growth in assets in the second quarter.
While Ameriprise’s initiatives to focus on cost management have resulted in controlled general and administration expenses in the past, overall costs are anticipated to have been elevated in the to-be-reported quarter due to costs related to technology upgrades.
Earnings Whispers
According to our quantitative model, the chances of Ameriprise beating the Zacks Consensus Estimate this time are low. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better — which is required to be confident of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Ameriprise has an Earnings ESP of -0.88%.
Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).
Stocks to Consider
A couple of finance stocks, which you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Raymond James Financial (RJF - Free Report) and LPL Financial (LPLA - Free Report) .
The Earnings ESP for RJF is +1.02%. Raymond James carries a Zacks Rank #3 at present. RJF is slated to report results on Jul 27.
LPL Financial is scheduled to release quarterly results on Aug 2. LPLA currently sports a Zacks Rank #1 (Strong Buy) and has an Earnings ESP of +0.13%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.