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Ameriprise (AMP) Q1 Earnings Beat as Revenues & AUM Rise Y/Y

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Ameriprise Financial’s (AMP - Free Report) first-quarter 2024 adjusted operating earnings of $8.39 per share handily surpassed the Zacks Consensus Estimate of $8.10. The bottom line reflects a rise of 16% 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 acted as a headwind.

After considering significant items, net income (GAAP basis) was $990 million or $9.46 per share, up from $417 million or $3.79 per share in the prior-year quarter. Our estimate for the metric was $616.1 million.

Adjusted Revenues Improve, Expenses Rise

Adjusted operating total net revenues were $4.10 billion, up 11% year over year. The top line lagged the Zacks Consensus Estimate of $4.16 billion.

Total GAAP net revenues were $4.15 billion, growing 11% year over year.

Adjusted operating expenses totaled $3.02 billion, which increased 11% year over year. We had projected adjusted expenses of $2.88 billion.

Total AUM and AUA increased 15% year over year to $1.42 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.33 trillion.

Share Repurchase Update

In the reported quarter, Ameriprise repurchased 1.2 million shares for $507 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 and EPS Surprise

Ameriprise Financial, Inc. price-consensus-eps-surprise-chart | Ameriprise Financial, Inc. Quote

AMP 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 2024 adjusted earnings of $9.81 per share handily surpassed the Zacks Consensus Estimate of $9.42. The figure reflects a jump of 24% from the year-ago quarter.

BLK’s results benefited from a rise in revenues and higher non-operating income. Further, the AUM balance witnessed an improvement, driven by net inflows. However, higher expenses acted as a dampener.

Blackstone’s (BX - Free Report) first-quarter 2024 distributable earnings of 98 cents per share were in line with the Zacks Consensus Estimate. The figure reflects a rise of 1% from the prior-year quarter.

BX’s results benefited from a rise in segment revenues and an improvement in the AUM balance. However, higher GAAP expenses hurt the results to some extent.


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