Ameriprise Financial Inc. Earnings: Profit Dips and Misses Estimates

The Cheat Sheet

S&P 500 component Ameriprise Financial Inc. reported its results for the fourth quarter. Ameriprise Financial provides financial planning, products, and services through its subsidiaries. The company offers solutions for its clients’ cash and liquidity, asset accumulation, income protection, and estate and wealth transfer needs.

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Ameriprise Financial Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the asset management company fell to $253 million ($1.08 per share) vs. $280 million ($1.08 per share) a year earlier. This is a decline of 9.6% from the year earlier quarter.

Actual vs. Wall St. Expectations: Ameriprise Financial Inc. fell short of the mean analyst estimate of $1.39 per share.

Quoting Management: “We delivered another good quarter and a strong year,” said Jim Cracchiolo, chairman and chief executive officer. “Despite the impact of volatile markets and low interest rates on our revenues, we continued to make significant progress. Our advisory business generated excellent results for the year, highlighted by record advisor productivity and accelerating success in our experienced advisor recruiting program. In the asset management business, equity flows remained negative for us and the industry. Apart from this near-term challenge, we feel very good about the global platform we’ve developed now that we have integrated Columbia Management and with Threadneedle expanding to new geographic markets.”

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the third quarter, net income fell 20.6% from the year earlier quarter.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 18 cents in the third quarter and by 2 cents in the second quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from $1.44 a share to $1.42 over the last ninety days. For the fiscal year, the average estimate has moved up from $5.04 a share to $5.07 over the last sixty days.

Stock Performance: Shares of AMP were up 2.3% from the previous close.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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