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Ameriprise (AMP) Down 4% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Ameriprise Financial Services (AMP - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ameriprise due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ameriprise’s fourth-quarter 2024 adjusted operating earnings of $9.36 per share handily surpassed the Zacks Consensus Estimate of $8.94. The bottom line reflected a rise of 30% from the year-ago quarter. Excluding other notable items, adjusted operating earnings were $9.54 per share.
Results benefited from higher revenues and a solid improvement in assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses was a headwind.
After considering significant items, net income (GAAP basis) was $1.07 billion or $10.58 per share, up substantially from $377 million or $3.57 per share in the prior-year quarter. Our estimate for net income (GAAP basis) was $955.4 million.
For 2024, adjusted operating earnings were $35.07 per share, which jumped 19% year over year and beat the consensus estimate of $33.93. Excluding other notable items, the metric was $35.79 per share. Net income (GAAP basis) was $3.4 billion or $33.05 per share, up from $2.56 billion or $23.71 per share in 2023. Our estimate for net income (GAAP basis) was $3.29 billion.
Adjusted Revenues Improve, Expenses Rise
Adjusted operating total net revenues for the reported quarter were $4.46 billion, up 13% year over year. Also, the top line beat the Zacks Consensus Estimate of $4.45 billion. Total GAAP net revenues were $4.5 billion, up 13% year over year.
Adjusted operating expenses totaled $3.27 billion, rising 10%. We had projected adjusted expenses to be $3.29 billion.
Total AUM and AUA increased 10% year over year to $1.52 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.53 trillion.
Update on Share Repurchases
Ameriprise repurchased 1.1 million shares for $619 million in the reported quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Ameriprise has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, 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 upward for the stock, and the magnitude of these revisions has been net zero. Notably, Ameriprise has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Ameriprise (AMP) Down 4% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Ameriprise Financial Services (AMP - Free Report) . Shares have lost about 4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ameriprise due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Ameriprise's Q4 Earnings Beat on Higher Revenues & AUM, Expenses Rise
Ameriprise’s fourth-quarter 2024 adjusted operating earnings of $9.36 per share handily surpassed the Zacks Consensus Estimate of $8.94. The bottom line reflected a rise of 30% from the year-ago quarter. Excluding other notable items, adjusted operating earnings were $9.54 per share.
Results benefited from higher revenues and a solid improvement in assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses was a headwind.
After considering significant items, net income (GAAP basis) was $1.07 billion or $10.58 per share, up substantially from $377 million or $3.57 per share in the prior-year quarter. Our estimate for net income (GAAP basis) was $955.4 million.
For 2024, adjusted operating earnings were $35.07 per share, which jumped 19% year over year and beat the consensus estimate of $33.93. Excluding other notable items, the metric was $35.79 per share. Net income (GAAP basis) was $3.4 billion or $33.05 per share, up from $2.56 billion or $23.71 per share in 2023. Our estimate for net income (GAAP basis) was $3.29 billion.
Adjusted Revenues Improve, Expenses Rise
Adjusted operating total net revenues for the reported quarter were $4.46 billion, up 13% year over year. Also, the top line beat the Zacks Consensus Estimate of $4.45 billion. Total GAAP net revenues were $4.5 billion, up 13% year over year.
Adjusted operating expenses totaled $3.27 billion, rising 10%. We had projected adjusted expenses to be $3.29 billion.
Total AUM and AUA increased 10% year over year to $1.52 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.53 trillion.
Update on Share Repurchases
Ameriprise repurchased 1.1 million shares for $619 million in the reported quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Ameriprise has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, 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 upward for the stock, and the magnitude of these revisions has been net zero. Notably, Ameriprise has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.