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Ameriprise (AMP) Down 1.5% 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 - Free Report) . Shares have lost about 1.5% in that time frame, outperforming 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 its most recent earnings report in order to get a better handle on the important catalysts.

Ameriprise Beats on Q1 Earnings, Revenues Rise Y/Y

Ameriprise’s first-quarter 2022 adjusted operating earnings per share of $5.98 surpassed the Zacks Consensus Estimate of $5.93. The bottom line reflects a rise of 10% from the year-ago quarter.

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

After considering significant items, net income (GAAP basis) was $761 million or $6.55 per share, up from $437 million or $3.58 per share in the prior-year quarter.

Revenues Improve, Expenses Rise

On an operating basis, adjusted total net revenues were $3.6 billion, up 10% year over year. The top line lagged the Zacks Consensus Estimate of $3.7 billion. On a GAAP basis, net revenues were $3.66 billion, up 9%.

Adjusted operating expenses totaled $2.8 billion, up 11% from the prior-year quarter.

Driven by solid client flows in the Advice & Wealth and the Asset Management segments, total AUM and AUA were $1.34 trillion, up 17% year over year.

Share Repurchase Update

In the reported quarter, Ameriprise repurchased 1.4 million shares for $429 million.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

Currently, Ameriprise has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. 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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