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A month has gone by since the last earnings report for Ameriprise Financial Services (AMP). Shares have lost about 4% 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 drivers.
Ameriprise's Q4 Earnings Beat on Higher Revenues & AUM, Expenses Rise
Ameriprise’s fourth-quarter 2024 adjusted operating earnings of $9.36 per share handily surpassed the Zacks Consensus Estimate of $8.94. The bottom line reflected a rise of 30% from the year-ago quarter. Excluding other notable items, adjusted operating earnings were $9.54 per share.
Results benefited from higher revenues and a solid improvement in 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 $1.07 billion or $10.58 per share, up substantially from $377 million or $3.57 per share in the prior-year quarter. Our estimate for net income (GAAP basis) was $955.4 million.
For 2024, adjusted operating earnings were $35.07 per share, which jumped 19% year over year and beat the consensus estimate of $33.93. Excluding other notable items, the metric was $35.79 per share. Net income (GAAP basis) was $3.4 billion or $33.05 per share, up from $2.56 billion or $23.71 per share in 2023. Our estimate for net income (GAAP basis) was $3.29 billion.
Adjusted Revenues Improve, Expenses Rise
Adjusted operating total net revenues for the reported quarter were $4.46 billion, up 13% year over year. Also, the top line beat the Zacks Consensus Estimate of $4.45 billion. Total GAAP net revenues were $4.5 billion, up 13% year over year.
Adjusted operating expenses totaled $3.27 billion, rising 10%. We had projected adjusted expenses to be $3.29 billion.
Total AUM and AUA increased 10% year over year to $1.52 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.53 trillion.
Update on Share Repurchases
Ameriprise repurchased 1.1 million shares for $619 million in the reported quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Ameriprise has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. 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.