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Ameriprise (AMP) Up 13.7% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Ameriprise Financial Services (AMP - Free Report) . Shares have added about 13.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ameriprise due for a pullback? 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 catalysts.
Ameriprise Q3 Earnings Top Estimates, AUM Balance Down
Ameriprise’s 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Ameriprise has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly 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.
Performance of an Industry Player
Ameriprise is part of the Zacks Financial - Investment Management industry. Over the past month, BlackRock (BLK - Free Report) , a stock from the same industry, has gained 15.5%. The company reported its results for the quarter ended September 2022 more than a month ago.
BlackRock reported revenues of $4.31 billion in the last reported quarter, representing a year-over-year change of -14.6%. EPS of $9.55 for the same period compares with $10.95 a year ago.
For the current quarter, BlackRock is expected to post earnings of $7.82 per share, indicating a change of -25% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for BlackRock. Also, the stock has a VGM Score of D.
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Ameriprise (AMP) Up 13.7% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Ameriprise Financial Services (AMP - Free Report) . Shares have added about 13.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Ameriprise due for a pullback? 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 catalysts.
Ameriprise Q3 Earnings Top Estimates, AUM Balance Down
Ameriprise’s 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Ameriprise has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly 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.
Performance of an Industry Player
Ameriprise is part of the Zacks Financial - Investment Management industry. Over the past month, BlackRock (BLK - Free Report) , a stock from the same industry, has gained 15.5%. The company reported its results for the quarter ended September 2022 more than a month ago.
BlackRock reported revenues of $4.31 billion in the last reported quarter, representing a year-over-year change of -14.6%. EPS of $9.55 for the same period compares with $10.95 a year ago.
For the current quarter, BlackRock is expected to post earnings of $7.82 per share, indicating a change of -25% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for BlackRock. Also, the stock has a VGM Score of D.