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Growth in AUM to Support Ameriprise This Earnings Season

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Ameriprise Financial, Inc. (AMP - Free Report) is scheduled to report third-quarter 2024 results on Oct. 23, after market close. Its revenues and earnings are anticipated to have increased year over year.

See the Zacks Earnings Calendar to stay ahead of market-making news.

In the last reported quarter, AMP’s earnings surpassed the Zacks Consensus Estimate. Results were aided by a rise in revenues and higher assets under management (AUM) and assets under administration (AUA) balances. However, increased expenses were an undermining factor.

Ameriprise has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average beat being 1.55%.

Ameriprise Financial, Inc. Price and EPS Surprise

Ameriprise Financial, Inc. Price and EPS Surprise

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

The Zacks Consensus Estimate for the company’s earnings is pegged at $8.91 per share, which indicates a rise of 16% from the prior-year quarter’s reported number. The consensus estimate has been revised marginally upward over the past seven days.

The consensus estimate for total sales is pegged at $4.31 billion, which indicates a 10.2% increase.

Q3 Estimates & Key Factors to Note for AMP

The Zacks Consensus Estimate for AMP’s management and financial advice fees (constituting more than 60% of total net revenues) is pegged at $2.51 billion, suggesting a 9.9% rise from the prior-year quarter’s reported number. Our estimate for the same is $2.45 billion.

The consensus estimate for distribution fees of $531.3 million indicates an increase of 14.7%. Our estimate for the same is $507.1 million. The consensus estimate for premiums, policy and contract charges is pegged at $393.6 million, indicating a rise of almost 1%. Our estimate for the same is pinned at $393.4 million.

The consensus estimate for net investment income of $878.6 million suggests an 8.6% increase. Our estimate for the same is pinned at $934.9 million. The consensus mark for other revenues of $129.6 million indicates 2% growth. Our estimate for the same is pegged at $128.2 million.

Supported by overall asset inflows on the back of favorable markets, the company’s total AUM and AUA balance is expected to have improved. The Zacks Consensus Estimate for total AUM and AUA is pegged at $1.46 trillion, indicating a jump of 18% from the year-ago quarter. Our estimate for the metric is $1.41 trillion.

While Ameriprise’s initiatives to focus on cost management have led to controlled general and administration expenses, overall costs are anticipated to have been elevated in the to-be-reported quarter due to costs related to technology upgrades and hirings. Our estimate for total expenses is pegged at $3.07 billion, implying a year-over-year rise of 9.3%.

Earnings Whispers for Ameriprise

According to our quantitative model, the chances of Ameriprise beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: Ameriprise has an Earnings ESP of +0.44%.

Zacks Rank: The company currently carries a Zacks Rank of 2 (Buy).

Ameriprise’s Peers Worth a Look

Here are a couple of other asset managers that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time:

SEI Investments (SEIC - Free Report) is scheduled to release third-quarter 2024 earnings on Oct. 23. The company, which carries a Zacks Rank #2 at present, has an Earnings ESP of +0.62%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SEIC’s quarterly earnings estimates have been unchanged at $1.07 over the past week.

AllianceBernstein (AB - Free Report) is scheduled to release third-quarter 2024 earnings on Oct. 24. The company, which sports a Zacks Rank #1 at present, has an Earnings ESP of +2.74%. 

AB’s quarterly earnings estimates have been unchanged at 73 cents over the past week


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