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Ameriprise (AMP) Q3 Earnings Beat, Revenues & Costs Rise Y/Y

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Ameriprise Financial’s AMP 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.

Conclusion

In July, Ameriprise closed its fixed annuity reinsurance transaction for RiverSource Life Insurance Company with Global Atlantic’s subsidiary, Commonwealth Annuity and Life Insurance Company.

The company’s solid AUM balance, diversified investment portfolio and business-restructuring efforts are expected to keep aiding profitability. However, rising expenses make us apprehensive.

Ameriprise Financial, Inc. Price, Consensus and EPS Surprise

Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise

Ameriprise Financial, Inc. price-consensus-eps-surprise-chart | Ameriprise Financial, Inc. Quote

Ameriprise currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

BlackRock, Inc.’s BLK third-quarter 2021 adjusted earnings of $10.95 per share outpaced the Zacks Consensus Estimate of $9.63. The figure reflects a rise of 18.8% from the year-ago quarter’s number.

Blackstone’s BX third-quarter 2021 distributable earnings of $1.28 per share comfortably surpassed the Zacks Consensus Estimate of 93 cents. The figure reflects a significant rise from 63 cents recorded in the prior-year quarter.

SEI Investments Co.’s SEIC third-quarter 2021 earnings of 97 cents per share were in line with the Zacks Consensus Estimate. The bottom line reflected 29% growth from the prior-year quarter.


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