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Ameriprise (AMP) Q3 Earnings Top Estimates, AUM Balance Down
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Ameriprise Financial’s (AMP - Free Report) third-quarter 2022 adjusted operating earnings (excluding unlocking) of $6.43 per share handily surpassed the Zacks Consensus Estimate of $5.82. The bottom line reflects a rise of 9% from the year-ago quarter. We had projected the same to be $5.99.
Results were aided by growth in revenues and stable expenses. However, the tough operating backdrop hurt the assets under management (AUM) and assets under administration (AUA) balance.
After considering significant items, net income (GAAP basis) was $548 million or $4.86 per share, down substantially from $1.03 billion or $8.65 per share in the prior-year quarter.
Revenues Improve, Expenses Stable
On an operating basis, adjusted total net revenues (excluding unlocking) were $3.54 billion, up 1% year over year. The top line beat the Zacks Consensus Estimate of $3.42 billion. Our estimate for the metric was $3.46 billion.
On a GAAP basis, net revenues were $3.49 billion, jumping 20%.
Adjusted operating expenses (excluding unlocking) totaled $2.64 billion, relatively stable year over year. We had projected the same to be $2.62 billion.
Total AUM and AUA decreased 9% year over year to $1.1 trillion on significant market depreciation, partly offset by cumulative net inflows over the past 12 months.
Share Repurchases
In the reported quarter, Ameriprise repurchased 1.8 million shares for $492 million.
Our Take
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line to some extent in the near term. Outflows in the company's Asset Management segment are another major concern. However, Ameriprise remains well-positioned for impressive top-line growth on the back of its robust AUM balance and business restructuring initiatives.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) third-quarter 2022 adjusted earnings of $9.55 per share surpassed the Zacks Consensus Estimate of $7.93. The figure reflects a decrease of 15.8% from the year-ago quarter.
Results benefited from a decline in expenses. However, lower revenues and assets under management (AUM) balance were the major headwinds for BLK.
Invesco’s (IVZ - Free Report) third-quarter 2022 adjusted earnings of 34 cents per share missed the Zacks Consensus Estimate of 43 cents by a significant margin. The bottom line plunged 55.8% from the prior-year quarter. Our estimate for earnings was 49 cents.
Results have been adversely impacted by lower assets under management (AUM) balance and long-term outflows, which hurt revenues. However, a decline in operating expenses was a tailwind for Invesco.
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Ameriprise (AMP) Q3 Earnings Top Estimates, AUM Balance Down
Ameriprise Financial’s (AMP - Free Report) third-quarter 2022 adjusted operating earnings (excluding unlocking) of $6.43 per share handily surpassed the Zacks Consensus Estimate of $5.82. The bottom line reflects a rise of 9% from the year-ago quarter. We had projected the same to be $5.99.
Results were aided by growth in revenues and stable expenses. However, the tough operating backdrop hurt the assets under management (AUM) and assets under administration (AUA) balance.
After considering significant items, net income (GAAP basis) was $548 million or $4.86 per share, down substantially from $1.03 billion or $8.65 per share in the prior-year quarter.
Revenues Improve, Expenses Stable
On an operating basis, adjusted total net revenues (excluding unlocking) were $3.54 billion, up 1% year over year. The top line beat the Zacks Consensus Estimate of $3.42 billion. Our estimate for the metric was $3.46 billion.
On a GAAP basis, net revenues were $3.49 billion, jumping 20%.
Adjusted operating expenses (excluding unlocking) totaled $2.64 billion, relatively stable year over year. We had projected the same to be $2.62 billion.
Total AUM and AUA decreased 9% year over year to $1.1 trillion on significant market depreciation, partly offset by cumulative net inflows over the past 12 months.
Share Repurchases
In the reported quarter, Ameriprise repurchased 1.8 million shares for $492 million.
Our Take
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line to some extent in the near term. Outflows in the company's Asset Management segment are another major concern. However, Ameriprise remains well-positioned for impressive top-line growth on the back of its robust AUM balance and business restructuring initiatives.
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 #3 (Hold). 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 2022 adjusted earnings of $9.55 per share surpassed the Zacks Consensus Estimate of $7.93. The figure reflects a decrease of 15.8% from the year-ago quarter.
Results benefited from a decline in expenses. However, lower revenues and assets under management (AUM) balance were the major headwinds for BLK.
Invesco’s (IVZ - Free Report) third-quarter 2022 adjusted earnings of 34 cents per share missed the Zacks Consensus Estimate of 43 cents by a significant margin. The bottom line plunged 55.8% from the prior-year quarter. Our estimate for earnings was 49 cents.
Results have been adversely impacted by lower assets under management (AUM) balance and long-term outflows, which hurt revenues. However, a decline in operating expenses was a tailwind for Invesco.