Ameriprise Financial Inc.
) reported third-quarter 2013 operating earnings per share of
$1.91, outpacing the Zacks Consensus Estimate of $1.73. Moreover,
results improved 45% from $1.32 earned in the year-ago quarter.
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Better-than-expected results were mainly attributable to rise in
revenues, partially offset by higher expenses. Further, assets
under management (AUM) and assets under administration showed
improvement. The company's capital deployment activities were
impressive as well.
After taking into consideration integration and restructuring
charges, market impact on index universal life benefits and net
realized gains/losses, Ameriprise's net income from continuing
operations came in at $381 million or $1.86 per share. This was
above net income of $174 million or 79 cents per share in the
On an operating basis, net revenue climbed 7% year over year to
$2.7 billion. The rise was largely driven by strong client net
inflows, increase in client activity and market appreciation. Net
revenue was in line with the Zacks Consensus Estimate.
Operating expenses came in at $2.1 billion, up 1% from the
year-ago quarter. The increase primarily resulted from rise in
benefits, claims, losses and settlement expenses as well as
general and administrative expense, partly offset by lower
Total AUM and assets under administration were $735 million,
rising 8% year over year. The increase was mainly due to market
appreciation and advisor client net inflows.
Capital Deployment Activities
In the reported quarter, Ameriprise repurchased 4.2 million
shares for $370 million.
Along with the earnings release, Ameriprise announced a regular
quarterly cash dividend of 52 cents per share. The dividend will
be paid on Nov 22 to shareholders of record as of Nov 12.
Notably, in the said quarter, the company returned $475 million
to its shareholders through share repurchases and dividends.
Other Company Releases
) third-quarter 2013 adjusted earnings were in line with the
Zacks Consensus Estimate. Results on a year-over-year basis
benefited from a rise in revenues, partly offset by higher
The Blackstone Group L.P.
) third-quarter 2013 economic net income marginally missed the
Zacks Consensus Estimate. Lower-than-expected results were due to
a fall in the top line, partially offset by lower expenses.
Among other asset managers,
) is scheduled to report its third-quarter earnings on Oct 31.
The company currently has a Zacks Rank #2 (Buy) and an
of +1.92%. Hence, it has the right combination to post an
earnings beat this quarter.
Ameriprise's consistent capital deployment activities continue to
boost investors' confidence. Moreover, the company's prudent
expense management and strong balance sheet will expectedly drive
bottom-line improvement, going forward. However, the prevalent
low interest-rate environment coupled with stringent regulations
is anticipated to keep the company's financials under pressure.
At present, Ameriprise holds a Zacks Rank #3 (Hold).