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Ameriprise Financial’s (AMP - Free Report) second-quarter 2023 adjusted operating earnings of $7.44 per share handily surpassed the Zacks Consensus Estimate of $7.29. The bottom line reflects a rise of 30% from the year-ago quarter.
Results were aided by growth in revenues, along with higher assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses was a negative.
After considering significant items, net income (GAAP basis) was $890 million or $8.21 per share, up from $614 million or $5.37 per share in the prior-year quarter.
Revenues Improve, Expenses Rise
On an operating basis, adjusted total net revenues were $3.83 billion, up 10% year over year. The top line missed the Zacks Consensus Estimate of $3.88 billion.
On a GAAP basis, net revenues were $3.88 billion, growing 11% year over year.
Adjusted operating expenses totaled $2.80 billion, which increased 6% year over year. We had projected the same to be $2.78 billion.
Total AUM and AUA increased 9% year over year to $1.28 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.25 trillion.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased 1.6 million shares for $492 million.
Concurrently, it authorized an additional $3.5 billion worth of repurchase plan through Sep 30, 2025. As of Jul 25, 2023, the company had $0.5 billion worth of shares left to be repurchased under its January 2022 authorization.
Our Take
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line. 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) second-quarter 2023 adjusted earnings of $9.28 per share handily surpassed the Zacks Consensus Estimate of $8.47. However, the figure reflects an increase of 26% from the year-ago quarter’s reported number.
BLK’s results benefited from a decline in expenses and higher non-operating income. Further, the AUM balance witnessed improvement. However, lower revenues acted as a headwind.
Invesco’s (IVZ - Free Report) second-quarter 2023 adjusted earnings of 31 cents per share lagged the Zacks Consensus Estimate of 40 cents. The bottom line plunged 20.5% from the prior-year quarter.
Results were hurt by a rise in operating expenses and lower revenues. Nevertheless, an increase in AUM balance aided IVZ’s results to some extent.
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Ameriprise (AMP) Q2 Earnings Beat, Revenues & Costs Rise Y/Y
Ameriprise Financial’s (AMP - Free Report) second-quarter 2023 adjusted operating earnings of $7.44 per share handily surpassed the Zacks Consensus Estimate of $7.29. The bottom line reflects a rise of 30% from the year-ago quarter.
Results were aided by growth in revenues, along with higher assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses was a negative.
After considering significant items, net income (GAAP basis) was $890 million or $8.21 per share, up from $614 million or $5.37 per share in the prior-year quarter.
Revenues Improve, Expenses Rise
On an operating basis, adjusted total net revenues were $3.83 billion, up 10% year over year. The top line missed the Zacks Consensus Estimate of $3.88 billion.
On a GAAP basis, net revenues were $3.88 billion, growing 11% year over year.
Adjusted operating expenses totaled $2.80 billion, which increased 6% year over year. We had projected the same to be $2.78 billion.
Total AUM and AUA increased 9% year over year to $1.28 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.25 trillion.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased 1.6 million shares for $492 million.
Concurrently, it authorized an additional $3.5 billion worth of repurchase plan through Sep 30, 2025. As of Jul 25, 2023, the company had $0.5 billion worth of shares left to be repurchased under its January 2022 authorization.
Our Take
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line. 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) second-quarter 2023 adjusted earnings of $9.28 per share handily surpassed the Zacks Consensus Estimate of $8.47. However, the figure reflects an increase of 26% from the year-ago quarter’s reported number.
BLK’s results benefited from a decline in expenses and higher non-operating income. Further, the AUM balance witnessed improvement. However, lower revenues acted as a headwind.
Invesco’s (IVZ - Free Report) second-quarter 2023 adjusted earnings of 31 cents per share lagged the Zacks Consensus Estimate of 40 cents. The bottom line plunged 20.5% from the prior-year quarter.
Results were hurt by a rise in operating expenses and lower revenues. Nevertheless, an increase in AUM balance aided IVZ’s results to some extent.