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Ameriprise Q1 Earnings Beat on Higher Revenues & AUM, Dividend Raised

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Ameriprise Financial’s (AMP - Free Report) first-quarter 2025 adjusted operating earnings of $9.50 per share handily surpassed the Zacks Consensus Estimate of $9.12. The bottom line reflected a rise of 13% from the year-ago quarter. 

Shares of AMP gained more than 1.5% in pre-market trading on better-than-expected quarterly performance.

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 $583 million or $5.83 per share, down from $990 million or $9.46 per share in the prior-year quarter.

AMP’s Adjusted Revenues Increase, Expenses Rise

Adjusted operating total net revenues for the reported quarter were $4.31 billion, up 5% year over year. However, the top line lagged the Zacks Consensus Estimate of $4.38 billion. Total GAAP net revenues were $4.35 billion, up 5% year over year.

Adjusted operating expenses totaled $3.16 billion, rising 5%. We had projected adjusted expenses to be $3.24 billion. 

As of March 31, 2025, total AUM and AUA was $1.49 trillion, up 3% year over year. The rise reflected decent client net inflows. Our estimate for the metric was $1.48 trillion.

Update on Ameriprise’s Capital Distribution Actions

Ameriprise repurchased 1.2 million shares for $617 million in the reported quarter.

The company announced a new share repurchase authorization of $4.5 billion through June 30, 2027. As of April 23, 2025, AMP had roughly $138 million under its July 2023 program, which is available through Sept. 30, 2025.

Ameriprise announced a quarterly cash dividend of $1.60 per share, marking an increase of 8% from the prior payout. The dividend will be paid out on May 19 to shareholders as of May 5.

Our Take on Ameriprise

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 and EPS Surprise

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

AMP currently carries a Zacks Rank #4 (Sell). 

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

Performance of AMP’s Peers

Invesco’s (IVZ - Free Report) first-quarter 2025 adjusted earnings of 44 cents per share surpassed the Zacks Consensus Estimate of 39 cents. Moreover, the bottom line jumped 33.3% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

IVZ’s results primarily gained from higher adjusted net revenues. An increase in AUM balance due to decent inflows was positive too. However, higher adjusted operating expenses were woe.

Blackstone’s (BX - Free Report) first-quarter 2025 distributable earnings of $1.09 per share surpassed the Zacks Consensus Estimate of $1.04. The figure reflects a rise of 11% from the prior-year quarter.

Results benefited from higher segment revenues and a surge in AUM balance. However, an increase in GAAP expenses was a headwind for BX.


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