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Ameriprise Financial Inc.’s (AMP - Free Report) second-quarter 2017 operating earnings per share of $2.80 comfortably surpassed the Zacks Consensus Estimate of $2.62. Also, the figure represents a year-over-year increase of 26%.
Results benefitted from a rise in revenues along with lower expenses. Also, growth in assets under management (AUM) and assets under administration (AUA) were on the positive side.
After taking into consideration several significant items, net income for the reported quarter came in at $393 million or $2.50 per share, up from $335 million or $1.97 per share in the prior-year quarter.
Revenues Increase, Expenses Decline
Net revenue (on a GAAP basis) was $2.99 billion, reflecting an increase of 4% from the year-ago quarter. Also, the figure marginally surpassed the Zacks Consensus Estimate of $2.95 billion.
On an operating basis, total net revenue came in at $2.95 billion, increasing 3% from the prior-year quarter.
Operating expenses came in at $2.37 billion, 1% lower than the prior-year quarter. The decrease was primarily due to a fall in general and administrative expense.
Strong AUM & AUA
As of Jun 30, 2017, total AUM and AUA was $834.70 billion, up 7% year over year, primarily driven by Ameriprise advisor client net inflows.
Capital Deployment
In the reported quarter, Ameriprise repurchased 2.8 million shares for $352 million.
Our Take
Ameriprise remains well positioned to grow inorganically through strategic acquisitions, given a solid liquidity position. Also, its efforts toward modifying its product and service-offering capacity are expected to support top-line growth in the quarters ahead.
Although the company’s initiatives to strengthen expense management resulted in controlled general and administrative expenses, advertising campaign and technology upgrades are likely to keep expenses elevated in the near term. Also, continued outflows in the Asset Management segment remains a cause of concern.
AMERIPRISE FINANCIAL SERVICES, INC. Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) second-quarter 2017 adjusted earnings of $5.24 per share lagged the Zacks Consensus Estimate of $5.39. Lower-than-expected results were primarily due to a rise in operating expenses and lower investment advisory performance fees. However, increase in investment advisory, administration fees and securities lending revenues, along with growth in assets under management acted as tailwinds.
The Blackstone Group L.P. (BX - Free Report) reported second-quarter 2017 economic net income (ENI) of 59 cents per share, which lagged the Zacks Consensus Estimate of 62 cents. An increase in expenses was the primary reason for the lower-than-expected results. However, the quarter witnessed a rise in revenues.
Lazard Ltd. (LAZ - Free Report) is expected to report its results on Jul 27.
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Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaries," but that should still leave plenty of money for regular investors who make the right trades early.
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Ameriprise (AMP) Q2 Earnings Beat Estimates, Revenues Grow
Ameriprise Financial Inc.’s (AMP - Free Report) second-quarter 2017 operating earnings per share of $2.80 comfortably surpassed the Zacks Consensus Estimate of $2.62. Also, the figure represents a year-over-year increase of 26%.
Results benefitted from a rise in revenues along with lower expenses. Also, growth in assets under management (AUM) and assets under administration (AUA) were on the positive side.
After taking into consideration several significant items, net income for the reported quarter came in at $393 million or $2.50 per share, up from $335 million or $1.97 per share in the prior-year quarter.
Revenues Increase, Expenses Decline
Net revenue (on a GAAP basis) was $2.99 billion, reflecting an increase of 4% from the year-ago quarter. Also, the figure marginally surpassed the Zacks Consensus Estimate of $2.95 billion.
On an operating basis, total net revenue came in at $2.95 billion, increasing 3% from the prior-year quarter.
Operating expenses came in at $2.37 billion, 1% lower than the prior-year quarter. The decrease was primarily due to a fall in general and administrative expense.
Strong AUM & AUA
As of Jun 30, 2017, total AUM and AUA was $834.70 billion, up 7% year over year, primarily driven by Ameriprise advisor client net inflows.
Capital Deployment
In the reported quarter, Ameriprise repurchased 2.8 million shares for $352 million.
Our Take
Ameriprise remains well positioned to grow inorganically through strategic acquisitions, given a solid liquidity position. Also, its efforts toward modifying its product and service-offering capacity are expected to support top-line growth in the quarters ahead.
Although the company’s initiatives to strengthen expense management resulted in controlled general and administrative expenses, advertising campaign and technology upgrades are likely to keep expenses elevated in the near term. Also, continued outflows in the Asset Management segment remains a cause of concern.
AMERIPRISE FINANCIAL SERVICES, INC. Price, Consensus and EPS Surprise
AMERIPRISE FINANCIAL SERVICES, INC. Price, Consensus and EPS Surprise | AMERIPRISE FINANCIAL SERVICES, INC. Quote
At present, Ameriprise 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) second-quarter 2017 adjusted earnings of $5.24 per share lagged the Zacks Consensus Estimate of $5.39. Lower-than-expected results were primarily due to a rise in operating expenses and lower investment advisory performance fees. However, increase in investment advisory, administration fees and securities lending revenues, along with growth in assets under management acted as tailwinds.
The Blackstone Group L.P. (BX - Free Report) reported second-quarter 2017 economic net income (ENI) of 59 cents per share, which lagged the Zacks Consensus Estimate of 62 cents. An increase in expenses was the primary reason for the lower-than-expected results. However, the quarter witnessed a rise in revenues.
Lazard Ltd. (LAZ - Free Report) is expected to report its results on Jul 27.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaries," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>