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Ameriprise (AMP) Up 10.8% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for Ameriprise Financial Services (AMP). Shares have added about 10.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Ameriprise due for a pullback? 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 Q3 Earnings Beat, Revenues & Costs Rise Y/Y

Ameriprise’s third-quarter 2023 adjusted operating earnings (excluding unlocking) of $7.68 per share handily surpassed the Zacks Consensus Estimate of $7.58. The bottom line reflects a rise of 21% from the year-ago quarter.

Results were aided by revenue growth, along with higher assets under management and assets under administration (AUA) balances. However, an increase in expenses was a negative.

After considering significant items, net income (GAAP basis) was $872 million or $8.14 per share, down from $1.06 billion or $9.41 per share in the prior-year quarter. Our estimate for the metric was $803.8 million.

Revenues Improve, Expenses Rise

On an operating basis, adjusted total net revenues were $3.91 billion, up 10% year over year. The top line missed the Zacks Consensus Estimate of $3.96 billion.

On a GAAP basis, net revenues were $3.93 billion, growing 13% year over year.

Adjusted operating expenses totaled $2.96 billion, which increased 18% year over year. We had projected the same to be $3.09 billion.

Total AUM and AUA increased 12% year over year to $1.23 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.28 trillion.

Share Repurchase Update

In the reported quarter, Ameriprise repurchased 1.5 million shares for $520 million.

Outlook

The company expects the AWM segment’s 2023 G&A growth to be in the mid-single-digit range.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

At this time, Ameriprise has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. 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

Ameriprise has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Ameriprise is part of the Zacks Financial - Investment Management industry. Over the past month, Invesco (IVZ), a stock from the same industry, has gained 7.4%. The company reported its results for the quarter ended September 2023 more than a month ago.

Invesco reported revenues of $1.1 billion in the last reported quarter, representing a year-over-year change of -1.1%. EPS of $0.35 for the same period compares with $0.34 a year ago.

For the current quarter, Invesco is expected to post earnings of $0.37 per share, indicating a change of -5.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.4% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Invesco. Also, the stock has a VGM Score of D.

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Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report

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