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Why Is Ameriprise (AMP) Up 13.1% Since Last Earnings Report?
AMPAmeriprise Financial(AMP) ZACKS·2024-11-22 17:37

Core Viewpoint - Ameriprise Financial Services reported a mixed performance in its Q3 2024 earnings, with adjusted operating earnings lagging behind estimates due to increased expenses, despite revenue growth and higher assets under management (AUM) and assets under administration (AUA) [2][4][5]. Financial Performance - Adjusted operating earnings for Q3 2024 were 8.83pershare,belowtheZacksConsensusEstimateof8.83 per share, below the Zacks Consensus Estimate of 8.91, but up 15% from the previous year [2]. - Net income on a GAAP basis was 511millionor511 million or 5.00 per share, down from 872millionor872 million or 8.14 per share in the prior-year quarter [3]. - Adjusted total net revenues were 4.35billion,an114.35 billion, an 11% increase year over year, surpassing the Zacks Consensus Estimate of 4.31 billion [4]. - Total GAAP net revenues reached 4.4billion,reflectinga124.4 billion, reflecting a 12% year-over-year increase [5]. Expense and AUM Analysis - Adjusted operating expenses totaled 3.3 billion, rising 11% year over year, exceeding projected expenses of 3.05billion[5].−TotalAUMandAUAincreasedby223.05 billion [5]. - Total AUM and AUA increased by 22% year over year to 1.51 trillion, driven by strong client net inflows and market appreciation [5]. Share Repurchase Activity - The company repurchased 1.3 million shares for 563millionduringthereportedquarter[6].FutureOutlook−Managementanticipatesthatnetinterestincomein2024willbehigherthanin2023[7].−Estimatesforthestockhavebeentrendingdownward,indicatingapotentialshiftininvestorsentiment[8][10].IndustryComparison−AmeripriseoperateswithintheZacksFinancial−InvestmentManagementindustry,wherecompetitorInvescoreportedrevenuesof563 million during the reported quarter [6]. Future Outlook - Management anticipates that net interest income in 2024 will be higher than in 2023 [7]. - Estimates for the stock have been trending downward, indicating a potential shift in investor sentiment [8][10]. Industry Comparison - Ameriprise operates within the Zacks Financial - Investment Management industry, where competitor Invesco reported revenues of 1.1 billion, a year-over-year increase of 0.6% [11]. - Invesco's expected earnings for the current quarter are $0.48 per share, reflecting a year-over-year change of 2.1% [12].