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Ameriprise Financial’s (AMP - Free Report) second-quarter 2024 adjusted operating earnings of $8.53 per share surpassed the Zacks Consensus Estimate of $8.51. The bottom line reflected a rise of 15% from the year-ago quarter's level. Excluding severance expenses, the second-quarter 2024 adjusted operating EPS was $8.72.
Results were aided by revenue growth, along with higher assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses acted as a headwind.
After considering significant items, net income (GAAP basis) was $829 million or $8.02 per share, down from $890 million or $8.21 per share in the prior-year quarter. Our estimate for the metric was $920.2 million.
Adjusted Revenues Improve, Expenses Rise
Adjusted operating total net revenues were $4.17 billion, up 9% year over year. However, the top line lagged the Zacks Consensus Estimate of $4.19 billion.
Total GAAP net revenues were $4.22 billion, up 9% year over year.
Adjusted operating expenses totaled $3.05 billion, which increased 9% year over year. We had projected adjusted expenses of $3.01 billion.
Total AUM and AUA increased 12% year over year to $1.43 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.39 trillion.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased 1.3 million shares for $542 million.
Our Take
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line. However, Ameriprise is well-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
BlackRock, Inc.’s (BLK - Free Report) second-quarter 2024 adjusted earnings of $10.36 per share handily surpassed the Zacks Consensus Estimate of $9.96. The figure reflects a rise of 12% from the year-ago quarter's level.
BLK’s results benefited from a rise in revenues. AUM witnessed a solid improvement, driven by net inflows and market appreciation. However, higher expenses and a fall in non-operating income acted as headwinds for BLK.
Blackstone’s (BX - Free Report) second-quarter 2024 distributable earnings of 96 cents per share lagged the Zacks Consensus Estimate of 99 cents. The figure declined 3.2% from the prior-year quarter's figure.
BX’s results were primarily hurt by an increase in GAAP expenses. Nevertheless, a rise in segment revenues and an improvement in the AUM balance were tailwinds.
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Ameriprise (AMP) Q2 Earnings Beat as Revenues & AUM Rise Y/Y
Ameriprise Financial’s (AMP - Free Report) second-quarter 2024 adjusted operating earnings of $8.53 per share surpassed the Zacks Consensus Estimate of $8.51. The bottom line reflected a rise of 15% from the year-ago quarter's level. Excluding severance expenses, the second-quarter 2024 adjusted operating EPS was $8.72.
Results were aided by revenue growth, along with higher assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses acted as a headwind.
After considering significant items, net income (GAAP basis) was $829 million or $8.02 per share, down from $890 million or $8.21 per share in the prior-year quarter. Our estimate for the metric was $920.2 million.
Adjusted Revenues Improve, Expenses Rise
Adjusted operating total net revenues were $4.17 billion, up 9% year over year. However, the top line lagged the Zacks Consensus Estimate of $4.19 billion.
Total GAAP net revenues were $4.22 billion, up 9% year over year.
Adjusted operating expenses totaled $3.05 billion, which increased 9% year over year. We had projected adjusted expenses of $3.01 billion.
Total AUM and AUA increased 12% year over year to $1.43 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.39 trillion.
Share Repurchase Update
In the reported quarter, Ameriprise repurchased 1.3 million shares for $542 million.
Our Take
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line. However, Ameriprise is well-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-eps-surprise-chart | Ameriprise Financial, Inc. Quote
AMP currently carries a Zacks Rank #3 (Hold). 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 - Free Report) second-quarter 2024 adjusted earnings of $10.36 per share handily surpassed the Zacks Consensus Estimate of $9.96. The figure reflects a rise of 12% from the year-ago quarter's level.
BLK’s results benefited from a rise in revenues. AUM witnessed a solid improvement, driven by net inflows and market appreciation. However, higher expenses and a fall in non-operating income acted as headwinds for BLK.
Blackstone’s (BX - Free Report) second-quarter 2024 distributable earnings of 96 cents per share lagged the Zacks Consensus Estimate of 99 cents. The figure declined 3.2% from the prior-year quarter's figure.
BX’s results were primarily hurt by an increase in GAAP expenses. Nevertheless, a rise in segment revenues and an improvement in the AUM balance were tailwinds.