We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2023 adjusted operating earnings (excluding regulatory accrual, severance and mark-to-market impacts on share-based compensation expenses) of $7.75 per share handily surpassed the Zacks Consensus Estimate of $7.67. The bottom line reflects a rise of 14% from the year-ago quarter.
Results were aided by revenue growth, along with higher assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses was a negative. Probably due to this, shares of the company lost 5% in the after-market trading following the earnings release.
After considering significant items, net income (GAAP basis) was $377 million or $3.57 per share, down from $649 million or $5.83 per share in the prior-year quarter. Our estimate for the metric was $675.2 million.
For 2023, adjusted operating earnings (excluding unlocking and regulatory accrual, severance, and mark-to-market impacts on share-based compensation expenses) of $30.46 per share handily surpassed the Zacks Consensus Estimate of $29.36. The bottom line reflects a rise of 24% from the previous year. Net income (GAAP basis) was $2.56 billion, down from $3.15 billion in the previous year. Our estimate for the metric was $2.85 billion.
Revenues Improve, Expenses Rise
Total net revenues for the quarter were $3.99 billion, up 9% year over year. The top line beat the Zacks Consensus Estimate of $3.87 billion.
Adjusted operating total net revenues were $3.95 billion, growing 8% year over year.
Adjusted operating expenses (excluding regulatory accrual, severance and mark-to-market impacts on share-based compensation expenses) totaled $2.91 billion, which increased 8% year over year. We had projected adjusted expenses of $2.83 billion.
Total AUM and AUA increased 15% year over year to $1.36 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.22 trillion.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased 1.2 million shares for $445 million.
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) fourth-quarter 2023 adjusted earnings of $9.66 per share handily surpassed the Zacks Consensus Estimate of $8.84. The figure reflects an increase of 8.2% from the year-ago quarter.
BLK’s quarterly results benefited from a rise in revenues and higher non-operating income. Further, its AUM balance witnessed an improvement due to net inflows. However, higher expenses acted as a dampener.
Invesco’s (IVZ - Free Report) fourth-quarter 2023 adjusted earnings of 47 cents per share handily surpassed the Zacks Consensus Estimate of 38 cents. The bottom line grew 20.5% from the prior-year quarter.
IVZ’s results benefited from an increase in the AUM balance on decent inflows. However, a rise in operating expenses and lower revenues were the undermining factors.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Ameriprise (AMP) Dips Despite Q4 Earnings Beat, Costs Rise Y/Y
Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2023 adjusted operating earnings (excluding regulatory accrual, severance and mark-to-market impacts on share-based compensation expenses) of $7.75 per share handily surpassed the Zacks Consensus Estimate of $7.67. The bottom line reflects a rise of 14% from the year-ago quarter.
Results were aided by revenue growth, along with higher assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses was a negative. Probably due to this, shares of the company lost 5% in the after-market trading following the earnings release.
After considering significant items, net income (GAAP basis) was $377 million or $3.57 per share, down from $649 million or $5.83 per share in the prior-year quarter. Our estimate for the metric was $675.2 million.
For 2023, adjusted operating earnings (excluding unlocking and regulatory accrual, severance, and mark-to-market impacts on share-based compensation expenses) of $30.46 per share handily surpassed the Zacks Consensus Estimate of $29.36. The bottom line reflects a rise of 24% from the previous year. Net income (GAAP basis) was $2.56 billion, down from $3.15 billion in the previous year. Our estimate for the metric was $2.85 billion.
Revenues Improve, Expenses Rise
Total net revenues for the quarter were $3.99 billion, up 9% year over year. The top line beat the Zacks Consensus Estimate of $3.87 billion.
Adjusted operating total net revenues were $3.95 billion, growing 8% year over year.
Adjusted operating expenses (excluding regulatory accrual, severance and mark-to-market impacts on share-based compensation expenses) totaled $2.91 billion, which increased 8% year over year. We had projected adjusted expenses of $2.83 billion.
Total AUM and AUA increased 15% year over year to $1.36 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.22 trillion.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased 1.2 million shares for $445 million.
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) fourth-quarter 2023 adjusted earnings of $9.66 per share handily surpassed the Zacks Consensus Estimate of $8.84. The figure reflects an increase of 8.2% from the year-ago quarter.
BLK’s quarterly results benefited from a rise in revenues and higher non-operating income. Further, its AUM balance witnessed an improvement due to net inflows. However, higher expenses acted as a dampener.
Invesco’s (IVZ - Free Report) fourth-quarter 2023 adjusted earnings of 47 cents per share handily surpassed the Zacks Consensus Estimate of 38 cents. The bottom line grew 20.5% from the prior-year quarter.
IVZ’s results benefited from an increase in the AUM balance on decent inflows. However, a rise in operating expenses and lower revenues were the undermining factors.