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Ameriprise's (AMP) Q1 Earnings Top Estimates, AUM Balance Dips
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Ameriprise Financial’s (AMP - Free Report) first-quarter 2023 adjusted operating earnings of $7.25 per share handily surpassed the Zacks Consensus Estimate of $7.13. The bottom line reflects a rise of 25% from the year-ago quarter. We had projected the same to be $6.60.
Results were aided by growth in revenues. However, the tough operating backdrop hurt the assets under management (AUM) and assets under administration (AUA) balances.
After considering significant items, net income (GAAP basis) was $417 million or $3.79 per share, down substantially from $825 million or $7.10 per share in the prior-year quarter.
Revenues Improve, Expenses Decline
On an operating basis, adjusted total net revenues were $3.7 billion, up 3% year over year. The top line missed the Zacks Consensus Estimate of $3.72 billion. Our estimate for the metric was $3.52 billion.
On a GAAP basis, net revenues were $3.74 billion, growing 3%.
Adjusted operating expenses totaled $2.72 billion, which declined 2%. We had projected the same to be $2.60 billion.
Total AUM and AUA decreased 8% year over year to $1.24 trillion. The fall reflected strong client net inflows that were more than offset by market depreciation and unfavorable foreign exchange translation.
Capital Deployment Activities
In the reported quarter, Ameriprise repurchased 1.6 million shares for $503 million.
Concurrently, the company announced a quarterly cash dividend of $1.35 per share. representing an 8% hike from the prior payout. The dividend will be paid out on May 19 to the stockholders of record as of May 8.
Our Take
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line. Outflows in the company's Asset Management segment are other major concerns. However, Ameriprise is 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) first-quarter 2023 adjusted earnings of $7.93 per share surpassed the Zacks Consensus Estimate of $7.71. However, the figure reflects a decrease of 16.7% from the year-ago quarter. Our estimate for adjusted earnings was $7.37.
BLK's results have benefited from a decline in expenses. However, lower revenues and AUM balance were major headwinds.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2023 earnings of 79 cents per share missed the Zacks Consensus Estimate of 82 cents. The bottom line reflects a decline of 41.9% from the prior-year quarter. Our estimate for earnings was 78 cents.
SEIC's results were adversely impacted by lower revenues. Also, marginally higher expenses created a headwind. Nevertheless, an increase in the AUM balance positively impacted the results in the quarter.
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Ameriprise's (AMP) Q1 Earnings Top Estimates, AUM Balance Dips
Ameriprise Financial’s (AMP - Free Report) first-quarter 2023 adjusted operating earnings of $7.25 per share handily surpassed the Zacks Consensus Estimate of $7.13. The bottom line reflects a rise of 25% from the year-ago quarter. We had projected the same to be $6.60.
Results were aided by growth in revenues. However, the tough operating backdrop hurt the assets under management (AUM) and assets under administration (AUA) balances.
After considering significant items, net income (GAAP basis) was $417 million or $3.79 per share, down substantially from $825 million or $7.10 per share in the prior-year quarter.
Revenues Improve, Expenses Decline
On an operating basis, adjusted total net revenues were $3.7 billion, up 3% year over year. The top line missed the Zacks Consensus Estimate of $3.72 billion. Our estimate for the metric was $3.52 billion.
On a GAAP basis, net revenues were $3.74 billion, growing 3%.
Adjusted operating expenses totaled $2.72 billion, which declined 2%. We had projected the same to be $2.60 billion.
Total AUM and AUA decreased 8% year over year to $1.24 trillion. The fall reflected strong client net inflows that were more than offset by market depreciation and unfavorable foreign exchange translation.
Capital Deployment Activities
In the reported quarter, Ameriprise repurchased 1.6 million shares for $503 million.
Concurrently, the company announced a quarterly cash dividend of $1.35 per share. representing an 8% hike from the prior payout. The dividend will be paid out on May 19 to the stockholders of record as of May 8.
Our Take
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line. Outflows in the company's Asset Management segment are other major concerns. However, Ameriprise is 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) first-quarter 2023 adjusted earnings of $7.93 per share surpassed the Zacks Consensus Estimate of $7.71. However, the figure reflects a decrease of 16.7% from the year-ago quarter. Our estimate for adjusted earnings was $7.37.
BLK's results have benefited from a decline in expenses. However, lower revenues and AUM balance were major headwinds.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2023 earnings of 79 cents per share missed the Zacks Consensus Estimate of 82 cents. The bottom line reflects a decline of 41.9% from the prior-year quarter. Our estimate for earnings was 78 cents.
SEIC's results were adversely impacted by lower revenues. Also, marginally higher expenses created a headwind. Nevertheless, an increase in the AUM balance positively impacted the results in the quarter.