Yahoo Finance Ameriprise (AMP) Up 3.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Ameriprise Financial Services (AMP). Shares have added about 3.6% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important catalysts.
Ameriprise's Q1 Earnings Top Estimates, AUM Balance Dips
Ameriprise’s first-quarter 2023 adjusted operating earnings of $7.25 per share handily surpassed the Zacks Consensus Estimate of $7.13. The bottom line reflects a rise of 25% from the year-ago quarter. We had projected the same to be $6.60.
Results were aided by growth in revenues. However, the tough operating backdrop hurt the assets under management (AUM) and assets under administration (AUA) balances.
After considering significant items, net income (GAAP basis) was $417 million or $3.79 per share, down substantially from $825 million or $7.10 per share in the prior-year quarter.
Revenues Improve, Expenses Decline
On an operating basis, adjusted total net revenues were $3.7 billion, up 3% year over year. The top line missed the Zacks Consensus Estimate of $3.72 billion. Our estimate for the metric was $3.52 billion.
On a GAAP basis, net revenues were $3.74 billion, growing 3%.
Adjusted operating expenses totaled $2.72 billion, which declined 2%. We had projected the same to be $2.60 billion.
Total AUM and AUA decreased 8% year over year to $1.24 trillion. The fall reflected strong client net inflows that were more than offset by market depreciation and unfavorable foreign exchange translation.
Share Repurchases
In the reported quarter, Ameriprise repurchased 1.6 million shares for $503 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Ameriprise has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ameriprise has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Ameriprise is part of the Zacks Financial - Investment Management industry. Over the past month, BlackRock (BLK), a stock from the same industry, has gained 0.3%. The company reported its results for the quarter ended March 2023 more than a month ago.
BlackRock reported revenues of $4.24 billion in the last reported quarter, representing a year-over-year change of -9.7%. EPS of $7.93 for the same period compares with $9.52 a year ago.
For the current quarter, BlackRock is expected to post earnings of $8.52 per share, indicating a change of +15.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.8% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for BlackRock. Also, the stock has a VGM Score of F.
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Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
BlackRock, Inc. (BLK) : Free Stock Analysis Report
