Ameriprise Financial’s AMP third-quarter 2024 adjusted operating earnings of $8.83 per share lagged the Zacks Consensus Estimate of $8.91. The bottom line reflected a rise of 15% from the year-ago quarter's level. Excluding severance expenses, the third-quarter adjusted operating earnings were $9.02 per share.
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Results were adversely impacted by an increase in expenses. However, revenue growth and higher assets under management (AUM) and assets under administration (AUA) balances acted as tailwinds.
After considering significant items, net income (GAAP basis) was $511 million or $5.00 per share, down from $872 million or $8.14 per share in the prior-year quarter. Our estimate for net income (GAAP basis) was $919.1 million.
AMP’s Adjusted Revenues Improve, Expenses Rise
Adjusted operating total net revenues were $4.35 billion, up 11% year over year. Also, the top line beat the Zacks Consensus Estimate of $4.31 billion.
Total GAAP net revenues were $4.4 billion, up 12% year over year.
Adjusted operating expenses totaled $3.3 billion, rising 11%. We had projected adjusted expenses of $3.05 billion. Adjusted operating total net expenses, excluding unlocking and severance expenses, were $3.19 billion.
Total AUM and AUA increased 22% year over year to $1.51 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.41 trillion.
Update on Ameriprise’s Share Repurchases
Ameriprise repurchased 1.3 million shares for $563 million in the reported quarter.
Our Take on Ameriprise
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line. However, Ameriprise is well-positioned for impressive top-line growth on the back of its robust AUM balance and business-restructuring initiatives.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
Ameriprise Financial, Inc. price-consensus-eps-surprise-chart | Ameriprise Financial, Inc. Quote
AMP currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of AMP’s Peers
BlackRock’s BLK third-quarter 2024 adjusted earnings of $11.46 per share handily surpassed the Zacks Consensus Estimate of $10.34. The figure reflects a rise of 5% from the year-ago quarter.
BLK’s results benefited from a rise in revenues and higher non-operating income. AUM witnessed robust growth and touched the $11.45 trillion mark, driven by net inflows and market appreciation. However, higher expenses acted as a headwind.
Invesco’s IVZ third-quarter 2024 adjusted earnings of 44 cents per share came in line with the Zacks Consensus Estimate. The bottom line increased 25.7% from the prior-year quarter.
IVZ’s results were primarily aided by a decline in adjusted expenses and higher adjusted net revenues. An increase in the AUM balance on decent inflows was a positive too.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
