Ameriprise Financial’s (AMP - Free Report) second-quarter 2019 adjusted operating earnings per share of $4.06 surpassed the Zacks Consensus Estimate of $4.00. Further, the figure was 14% higher than the year-ago quarter level.
Results benefited from growth in assets under management (AUM) and assets under administration (AUA) along with higher revenues. However, rise in operating expenses was a headwind.
After taking into consideration several significant items, net income was $492 million or $3.57 per share, up from $462 million or $3.10 per share reported in the prior-year quarter.
Revenues Improve, Costs Rise
Net revenues (on a GAAP basis) were $3.25 billion, up 1.5% year over year. Moreover, the figure beat the Zacks Consensus Estimate of $2.95 billion. On an operating basis, total adjusted net revenues were also nearly $3.15 billion, up 3.2% year over year.
Adjusted operating expenses were $2.57 billion, up nearly 2.4% from the prior-year quarter.
AUM & AUA Improve
As of Jun 30, 2019, total AUM and AUA was $915.90 billion, up 2.8% year over year.
In the reported quarter, Ameriprise returned $570 million to shareholders in forms of share repurchases and dividends.
While Ameriprise’s efforts to optimize its capital and risk position, and shift focus to core growth areas of Advice & Wealth Management are encouraging; continuously increasing expenses (as witnessed in the reported quarter) are likely to hurt profitability. Moreover, significant outflows in the Asset Management segment are expected to hamper financials.
Ameriprise currently carries a Zacks Rank #4 (Sell).
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 2019 adjusted earnings of $6.41 per share lagged the Zacks Consensus Estimate of $6.52. Moreover, the figure was 3.8% lower than the year-ago quarter’s number.
Blackstone (BX - Free Report) reported second-quarter 2019 distributable earnings of 57 cents, beating the Zacks Consensus Estimate of 50 cents. Moreover, the figure reflects improvement from 56 cents earned in the prior-year quarter.
Cohen & Steers’ (CNS - Free Report) second-quarter 2019 adjusted earnings of 62 cents per share lagged the Zacks Consensus Estimate of 63 cents. However, the bottom line was 5.1% higher than the year-ago quarter figure.
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