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Growth in AUM to Support Ameriprise (AMP) in Q2 Earnings

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Ameriprise Financial, Inc. (AMP - Free Report) is scheduled to report second-quarter 2024 results on Jul 24, after market close. Its revenues and earnings in the to-be-reported quarter are anticipated to have increased on a year-over-year basis.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were aided by growth in revenues, along with higher assets under management (AUM) and assets under administration (AUA) balances. However, increased expenses acted as a negative.

Ameriprise has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average beat being 2%.

Ameriprise Financial, Inc. Price and EPS Surprise

 

Ameriprise Financial, Inc. Price and EPS Surprise

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

The Zacks Consensus Estimate for the company’s second-quarter earnings is pegged at $8.51 per share, which indicates a rise of 14.4% from the prior-year quarter’s reported number. The consensus estimate has been unchanged over the past seven days.

The consensus estimate for total sales is pegged at $4.18 billion, which indicates a 9.2% rise from the year-ago quarter’s reported figure.

Estimates & Key Factors to Note for Q2

The Zacks Consensus Estimate for AMP’s second-quarter management and financial advice fees (constituting more than 60% of total net revenues) is pegged at $2.45 billion, which suggests an 11.6% rise from the prior-year quarter’s reported number. Our estimate for the same is $2.37 billion.

The consensus estimate for distribution fees of $529 million indicates a year-over-year rise of 9.8%. Our estimate for the same is $496.6 million. The consensus estimate for premiums, policy and contract charges is pegged at $393 million, indicating a year-over-year rise of 2.6%. Our estimate for the same is pinned at $362.6 million.

The consensus estimate for net investment income of $859 million suggests a 5.9% year-over-year increase. Our estimate for the same is pinned at $881.1 million. The consensus mark for other revenues of $137 million indicates a 3.8% rise from the prior-year quarter’s reported figure. Our estimate for the same is pegged at $175.1 million.

Based on the expectations of improved advisor productivity, the Advice & Wealth Management segment is expected to have recorded growth in assets in the second quarter.

Moreover, supported by overall asset inflows, the total AUM balance is likely to have increased. The Zacks Consensus Estimate for total AUM and AUA is pegged at $1.42 trillion, indicating an increase of 11.4% from the year-ago quarter’s reported number. Our estimate for the metric is $1.39 trillion.

While Ameriprise’s initiatives to focus on cost management have led to controlled general and administration expenses in the past, overall costs are anticipated to have been elevated in the to-be-reported quarter due to costs related to technology upgrades. Our estimate for total expenses is pegged at $2.97 billion, which indicates a year-over-year rise of 8%.

Earnings Whispers

According to our quantitative model, the chances of Ameriprise beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better — which is required to be confident of an earnings beat.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: Ameriprise has an Earnings ESP of +0.77%.

Zacks Rank: The company currently carries a Zacks Rank of 3.

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

Earnings Dates & Expectations of Other Finance Stocks

LPL Financial (LPLA - Free Report) is slated to announce second-quarter 2024 numbers on Jul 25.

Over the past 30 days, the Zacks Consensus Estimate for LPL Financial’s quarterly earnings has moved 1.6% lower to $3.71, implying a 5.8% decrease from the prior-year reported number.

Ares Capital Corporation (ARCC - Free Report) is scheduled to announce quarterly numbers on Jul 30.

Over the past 30 days, the Zacks Consensus Estimate for Ares Capital’s quarterly earnings has been unchanged at 58 cents. The estimate suggests no change from the prior-year reported number.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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