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Ameriprise Financial’s (AMP - Free Report) first-quarter 2020 adjusted operating earnings per share of $5.41 comfortably beat the Zacks Consensus Estimate of $3.88. Also, the figure was 46% higher than the year-ago quarter.
The results reflect an improvement in adjusted revenues. However, decline in assets under management (AUM) and assets under administration (AUA) balance, as well as an increase in expenses were headwinds.
After taking into consideration several significant items, net income was $2.03 billion or $15.88 per share, up significantly from $395 million or $2.82 per share in the prior-year quarter.
Revenues Down, Expenses Up
Net revenues (on a GAAP basis) were $3 billion, down 4% year over year. The figure, however, beat the Zacks Consensus Estimate of $2.87 billion. On an operating basis, total adjusted net revenues (excluding Auto & Home) were $2.95 billion, up 4% year over year.
Adjusted quarterly operating expenses (excluding Auto & Home) were $2.30 billion, increasing 4% from the prior-year quarter.
AUM & AUA Improve
As of Mar 31, 2020, total AUM and AUA was $839.1 billion, down 6% year over year.
Dividend Hike
Concurrently, Ameriprise announced a quarterly cash dividend of $1.04 per share, representing a 7% hike from the prior payout. The dividend will be paid on May 29 to shareholders of record on May 18.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased shares worth $386 million.
Our Take
Decent AUM balance and restructuring initiatives are expected to continue supporting the company. Moreover, its enhanced capital deployments 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
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2020 adjusted earnings of $6.60 per share lagged the Zacks Consensus Estimate of $6.69. The figure was marginally lower than the year-ago number.
Invesco (IVZ - Free Report) reported first-quarter 2020 adjusted earnings of 34 cents per share, missing the Zacks Consensus Estimate of 56 cents. Also, the bottom line declined 39.3% from the prior-year quarter.
Affiliated Managers Group Inc.’s (AMG - Free Report) first-quarter 2020 economic earnings of $3.16 per share surpassed the Zacks Consensus Estimate of $3.14. However, the bottom line declined 3.1% year over year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Ameriprise (AMP) Beats Q1 Earnings Estimates, Ups Dividend
Ameriprise Financial’s (AMP - Free Report) first-quarter 2020 adjusted operating earnings per share of $5.41 comfortably beat the Zacks Consensus Estimate of $3.88. Also, the figure was 46% higher than the year-ago quarter.
The results reflect an improvement in adjusted revenues. However, decline in assets under management (AUM) and assets under administration (AUA) balance, as well as an increase in expenses were headwinds.
After taking into consideration several significant items, net income was $2.03 billion or $15.88 per share, up significantly from $395 million or $2.82 per share in the prior-year quarter.
Revenues Down, Expenses Up
Net revenues (on a GAAP basis) were $3 billion, down 4% year over year. The figure, however, beat the Zacks Consensus Estimate of $2.87 billion. On an operating basis, total adjusted net revenues (excluding Auto & Home) were $2.95 billion, up 4% year over year.
Adjusted quarterly operating expenses (excluding Auto & Home) were $2.30 billion, increasing 4% from the prior-year quarter.
AUM & AUA Improve
As of Mar 31, 2020, total AUM and AUA was $839.1 billion, down 6% year over year.
Dividend Hike
Concurrently, Ameriprise announced a quarterly cash dividend of $1.04 per share, representing a 7% hike from the prior payout. The dividend will be paid on May 29 to shareholders of record on May 18.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased shares worth $386 million.
Our Take
Decent AUM balance and restructuring initiatives are expected to continue supporting the company. Moreover, its enhanced capital deployments 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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2020 adjusted earnings of $6.60 per share lagged the Zacks Consensus Estimate of $6.69. The figure was marginally lower than the year-ago number.
Invesco (IVZ - Free Report) reported first-quarter 2020 adjusted earnings of 34 cents per share, missing the Zacks Consensus Estimate of 56 cents. Also, the bottom line declined 39.3% from the prior-year quarter.
Affiliated Managers Group Inc.’s (AMG - Free Report) first-quarter 2020 economic earnings of $3.16 per share surpassed the Zacks Consensus Estimate of $3.14. However, the bottom line declined 3.1% year over year.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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