It has been about a month since the last earnings report for Ameriprise Financial Services (AMP Quick QuoteAMP - Free Report) . Shares have added about 13.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Ameriprise due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Ameriprise's Q3 Earnings Lag on Higher Expenses, Revenues & AUM Rise

Ameriprise Financial’s third-quarter 2024 adjusted operating earnings of $8.83 per share lagged the Zacks Consensus Estimate of $8.91. The bottom line reflected a rise of 15% from the year-ago quarter's level. Excluding severance expenses, third-quarter adjusted operating earnings were $9.02 per share.

Results were adversely impacted by an increase in expenses. However, revenue growth and higher AUM and AUA balances acted as tailwinds.

After considering significant items, net income (GAAP basis) was $511 million or $5.00 per share, down from $872 million or $8.14 per share in the prior-year quarter. Our estimate for net income (GAAP basis) was $919.1 million.

Adjusted Revenues Improve, Expenses Rise

Adjusted operating total net revenues were $4.35 billion, up 11% year over year. Also, the top line beat the Zacks Consensus Estimate of $4.31 billion.

Total GAAP net revenues were $4.4 billion, up 12% year over year.

Adjusted operating expenses totaled $3.3 billion, rising 11%. We had projected adjusted expenses of $3.05 billion. Adjusted operating total net expenses, excluding unlocking and severance expenses, were $3.19 billion.

Total AUM and AUA increased 22% year over year to $1.51 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.41 trillion.

Update on Share Repurchases

Ameriprise repurchased 1.3 million shares for $563 million in the reported quarter.

Outlook

Management expects net interest income in 2024 to be higher than in 2023.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Ameriprise has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ameriprise has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Ameriprise belongs to the Zacks Financial - Investment Management industry. Another stock from the same industry, Invesco (IVZ Quick QuoteIVZ - Free Report) , has gained 0.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2024.

Invesco reported revenues of $1.1 billion in the last reported quarter, representing a year-over-year change of +0.6%. EPS of $0.44 for the same period compares with $0.35 a year ago.

Invesco is expected to post earnings of $0.48 per share for the current quarter, representing a year-over-year change of +2.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.3%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Invesco. Also, the stock has a VGM Score of C.