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Ameriprise (AMP) Q4 Earnings Miss Estimates, Costs Decline
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Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2019 adjusted operating earnings per share of $4.20 lagged the Zacks Consensus Estimate of $4.24. However, the figure was 10.5% higher than the year-ago quarter.
The company recorded higher revenues in the quarter. Moreover, growth in assets under management (AUM) and assets under administration (AUA) supported results to some extent. Further, a decline in expenses was a tailwind.
After taking into consideration several significant items, net income was $463 million or $3.53 per share, down from $539 million or $3.76 per share reported in the prior-year quarter.
For 2019, adjusted operating earnings per share of $16.10 lagged the Zacks Consensus Estimate of $16.17. However, the figure was 10% higher than that reported in 2018. Net income (GAAP basis) for the year was $1.89 billion or $13.92 per share, down from $2.10 billion or $14.20 per share reported in 2018.
Revenues Improve, Expenses Decline
Quarterly net revenues (on a GAAP basis) were $3.29 billion, up 3.4% year over year. The figure beat the Zacks Consensus Estimate of $2.99 billion. On an operating basis, total adjusted net revenues were $3.05 billion, down 3.9% year over year.
For 2019, net revenues (on a GAAP basis) were $12.97 billion, up 1% year over year. Moreover, the figure beat the Zacks Consensus Estimate of $12.03 billion.
Adjusted quarterly operating expenses were $2.40 billion, down 4.4% from the prior-year quarter.
AUM & AUA Improve
As of Dec 31, 2019, total AUM and AUA was $973.45 billion, up 18.3% year over year.
Capital Deployment
In the reported quarter, Ameriprise returned $0.7 billion to shareholders in forms of share repurchases and dividends.
Our Take
Improving AUM balance and restructuring initiatives (including the sale of Home & Auto division and the launch of federal savings bank) are expected to continue supporting the company. Moreover, its enhanced capital deployments reflect a strong balance sheet position and will likely continue to enhance shareholder value. However, significant outflows in the Asset Management segment are expected to hamper financials.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
Performance & Release Date of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2019 adjusted earnings of $8.34 per share surpassed the Zacks Consensus Estimate of $7.67. Moreover, the figure was 37.2% higher than the year-ago quarter’s number.
Cohen & Steers’ (CNS - Free Report) fourth-quarter 2019 adjusted earnings of 74 cents per share surpassed the Zacks Consensus Estimate of 67 cents. Also, the bottom line was 32.1% higher than the year-ago quarter figure.
Affiliated Managers Group, Inc. (AMG - Free Report) is slated to announce results on Feb 3.
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Ameriprise (AMP) Q4 Earnings Miss Estimates, Costs Decline
Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2019 adjusted operating earnings per share of $4.20 lagged the Zacks Consensus Estimate of $4.24. However, the figure was 10.5% higher than the year-ago quarter.
The company recorded higher revenues in the quarter. Moreover, growth in assets under management (AUM) and assets under administration (AUA) supported results to some extent. Further, a decline in expenses was a tailwind.
After taking into consideration several significant items, net income was $463 million or $3.53 per share, down from $539 million or $3.76 per share reported in the prior-year quarter.
For 2019, adjusted operating earnings per share of $16.10 lagged the Zacks Consensus Estimate of $16.17. However, the figure was 10% higher than that reported in 2018. Net income (GAAP basis) for the year was $1.89 billion or $13.92 per share, down from $2.10 billion or $14.20 per share reported in 2018.
Revenues Improve, Expenses Decline
Quarterly net revenues (on a GAAP basis) were $3.29 billion, up 3.4% year over year. The figure beat the Zacks Consensus Estimate of $2.99 billion. On an operating basis, total adjusted net revenues were $3.05 billion, down 3.9% year over year.
For 2019, net revenues (on a GAAP basis) were $12.97 billion, up 1% year over year. Moreover, the figure beat the Zacks Consensus Estimate of $12.03 billion.
Adjusted quarterly operating expenses were $2.40 billion, down 4.4% from the prior-year quarter.
AUM & AUA Improve
As of Dec 31, 2019, total AUM and AUA was $973.45 billion, up 18.3% year over year.
Capital Deployment
In the reported quarter, Ameriprise returned $0.7 billion to shareholders in forms of share repurchases and dividends.
Our Take
Improving AUM balance and restructuring initiatives (including the sale of Home & Auto division and the launch of federal savings bank) are expected to continue supporting the company. Moreover, its enhanced capital deployments reflect a strong balance sheet position and will likely continue to enhance shareholder value. However, significant outflows in the Asset Management segment are expected to hamper financials.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
Ameriprise Financial, Inc. price-consensus-eps-surprise-chart | Ameriprise Financial, Inc. Quote
Ameriprise currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Release Date of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2019 adjusted earnings of $8.34 per share surpassed the Zacks Consensus Estimate of $7.67. Moreover, the figure was 37.2% higher than the year-ago quarter’s number.
Cohen & Steers’ (CNS - Free Report) fourth-quarter 2019 adjusted earnings of 74 cents per share surpassed the Zacks Consensus Estimate of 67 cents. Also, the bottom line was 32.1% higher than the year-ago quarter figure.
Affiliated Managers Group, Inc. (AMG - Free Report) is slated to announce results on Feb 3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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