Why Is Ameriprise (AMP) Up 4.6% Since Last Earnings Report?

It has been about a month since the last earnings report for Ameriprise Financial Services (AMP). Shares have added about 4.6% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Ameriprise due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Ameriprise Q2 Earnings Lag Estimates, Revenues Decline Y/Y

Ameriprise Financial’s second-quarter 2020 adjusted operating earnings per share of $2.64 lagged the Zacks Consensus Estimate of $2.94. Also, the figure was 35% lower than the year-ago quarter.

Results were primarily hurt by a decline in revenues, partly offset by lower expenses. However, an improvement in assets under management and assets under administration balance were tailwinds.

After taking into consideration significant items, net loss was $539 million or $4.31 per share against net income of $492 million or $3.57 per share in the prior-year quarter.

Revenues & Expenses Decline

On an operating basis, total adjusted net revenues were $2.77 billion, down 14.8% year over year. The figure lagged the Zacks Consensus Estimate of $2.81 billion. On a GAAP basis, net revenues were $2.71 billion, down 16.4% year over year.

Adjusted operating expenses (excluding Auto & Home) were $2.19 billion, decreasing 4.6% from the prior-year quarter.

AUM & AUA Improve

As of Jun 30, 2020, total AUM and AUA was $946.78 billion, up 3.4% year over year.

Share Repurchase Update

In the reported quarter, Ameriprise repurchased 1.7 million shares.

Outlook

G&A expenses in the Advice & Wealth segment are expected to be down $125 million year over year in 2020.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

VGM Scores

At this time, Ameriprise has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Ameriprise has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.