Ameriprise (AMP) Up 2.1% 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 2.1% 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 drivers.
Ameriprise Q3 Earnings Beat, Revenues & Costs Rise Y/Y
Ameriprise’s third-quarter 2021 adjusted operating earnings per share of $5.91 surpassed the Zacks Consensus Estimate of $5.46. The bottom line reflects a rise of 38.4% from the year-ago quarter.
Results were aided by growth in revenues, partly offset by higher expenses. Improvements in assets under management (AUM) and assets under administration (AUA) balance were tailwinds.
After considering significant items, net income (GAAP basis) was $1.03 billion or $8.65 per share against a net loss of $140 million or $1.14 per share in the prior-year quarter.
Revenues Improve, Expenses Rise
On an operating basis, total adjusted net revenues (excluding unlocking) were $3.50 billion, up 17.4% year over year. The top line missed the Zacks Consensus Estimate of $3.54 billion. On a GAAP basis, net revenues were $2.90 billion, down 3.3% year over year.
Adjusted operating expenses (excluding unlocking) totaled $2.64 billion, up 14.2% from the prior-year quarter.
AUM & AUA Improve
Driven by solid client flows in the Wealth and Asset Management segments and market appreciation, total AUM and AUA were $1.21 trillion, up 20.8% year over year.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased shares worth $533 million.
Outlook
The company expects margins in Asset Management to remain in the mid 40% range in the near term driven by the continued flow momentum and equity markets at these levels.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Ameriprise has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, 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 B. 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.
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