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Ameriprise (AMP) Down 4.7% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Ameriprise Financial Services (AMP). Shares have lost about 4.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Ameriprise due for a breakout? 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 Q4 Earnings Beat, Revenues & Costs Rise Y/Y

Ameriprise’s fourth-quarter 2021 adjusted operating earnings per share of $6.15 surpassed the Zacks Consensus Estimate of $5.77. The bottom line reflects a rise of 35.8% 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.

The acquisition of Canada-based BMO Financial Group’s EMEA asset management operations (closed in November 2021) has helped in strengthening Ameriprise’s wealth and asset management businesses.

After considering significant items, net income (GAAP basis) was $701 million or $5.96 per share, up from $177 million or $1.43 per share in the prior-year quarter.

In 2021, adjusted operating earnings per share of $22.70 surpassed the Zacks Consensus Estimate of $22.30. The bottom line increased 61.2% from 2020. Net income (GAAP basis) was $2.76 billion or $23.00 per share, up from $1.53 billion or $12.20 per share in the previous year.

Revenues Improve, Expenses Rise

On an operating basis, total adjusted net revenues were $3.71 billion, up 18.1% year over year. The top line beat the Zacks Consensus Estimate of $3.56 billion. On a GAAP basis, net revenues were $3.76 billion, up 18.1% year over year.

Adjusted operating expenses totaled $2.81 billion, up 14.1% from the prior-year quarter.

AUM & AUA Improve

Driven by solid client flows in the Advice & Wealth and the Asset Management segments (including the BMO-related flows), total AUM and AUA were $1.42 trillion, up 28.7% year over year. BMO EMEA added $136 billion of acquired assets.

Share Repurchase Update

In the reported quarter, Ameriprise repurchased shares worth $499 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

At this time, Ameriprise has an average Growth Score of C, a grade with the same score on the momentum front. 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 trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ameriprise has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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