Why Is Ameriprise (AMP) Down 2.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Ameriprise Financial Services (AMP). Shares have lost about 2.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ameriprise due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Ameriprise Q4 Earnings Beat Estimates, AUM Balance Dips
Ameriprise’s fourth-quarter 2022 adjusted operating earnings (excluding unlocking) of $6.94 per share handily surpassed the Zacks Consensus Estimate of $6.35. The bottom line reflects a rise of 13% from the year-ago quarter. We had projected the same to be $6.20.
Results were aided by lower expenses. However, the tough operating backdrop hurt the AUM and assets under administration (AUA) balance. This, in turn, hampered top-line growth.
After considering significant items, net income (GAAP basis) was $494 million or $4.43 per share, down from $701 million or $5.96 per share in the prior-year quarter.
In 2022, adjusted operating earnings of $25.14 outpaced the consensus estimate of $24.54 and grew 11% year over year. Net income (GAAP basis) was $2.56 billion or $22.51 per share, down from $2.76 billion or $23.00 per share in 2021.
Revenues & Expenses Decline
On an operating basis, quarterly adjusted total net revenues (excluding unlocking) were $3.65 billion, down 2% year over year. The top line, however, beat the Zacks Consensus Estimate of $3.48 billion. Our estimate for the metric was $3.37 billion.
On a GAAP basis, net revenues were $3.62 billion, declining 4%.
Adjusted operating expenses totaled $2.67 billion, which declined 5%. We had projected the same to be $2.51 billion.
Total AUM and AUA decreased 17% year over year to $1.18 trillion on market depreciation.
Share Repurchases
In the reported quarter, Ameriprise repurchased 1.6 million shares for $472 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
Currently, Ameriprise has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, 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
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Ameriprise has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
