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Ameriprise (AMP) Stock Up on Q2 Earnings Beat, Costs Rise Y/Y

Shares of Ameriprise Financial AMP gained 1.4% in after-market trading following the release of its second-quarter 2022 results. Adjusted operating earnings per share of $5.81 surpassed the Zacks Consensus Estimate of $5.73. The bottom line reflects a rise of 10.2% from the year-ago quarter.

Results were aided by growth in revenues, and solid improvement in the assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses was a headwind.

After considering significant items, net income (GAAP basis) was $756 million or $6.61 per share, up from $591 million or $4.88 per share in the prior-year quarter.

Revenues Improve, Expenses Rise

On an operating basis, adjusted total net revenues were $3.48 billion, up 2.7% year over year. The top line lagged the Zacks Consensus Estimate of $3.51 billion. On a GAAP basis, net revenues were $3.51 billion, up 2.6%.

Adjusted operating expenses totaled $2.64 billion, up 1.3% from the prior-year quarter.

Driven by solid client flows in the Advice & Wealth Management segment, total AUM and AUA increased 3.4% year over year to $1.17 trillion.

Share Repurchases

In the reported quarter, Ameriprise repurchased 1.8 million shares for $458 million.

Our Take

Persistently rising expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line to some extent in the near term. Outflows in the company's Asset Management segment are another major concern. However, Ameriprise remains positioned for impressive top-line growth on the back of its robust AUM balance and business restructuring initiatives.

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 #5 (Strong Sell).

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 second-quarter 2022 adjusted earnings of $7.36 per share missed the Zacks Consensus Estimate of $8.33. The figure reflects a decrease of 30% from the year-ago quarter.

BLK’s results were adversely impacted by an unfavorable operating backdrop, leading to lower revenues and AUM balance. A modest decline in expenses was a tailwind.

SEI Investments Co.’s SEIC second-quarter 2022 earnings of 81 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line reflected a decline of 12.9% from the prior-year quarter.

SEIC’s results were hurt by a rise in expenses. However, growth in revenues and an increase in the AUM balance were tailwinds.

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