Ameriprise's Q4 Earnings Beat on Higher Revenues & AUM, Expenses Rise

Ameriprise Financial’s AMP fourth-quarter 2024 adjusted operating earnings of $9.36 per share handily surpassed the Zacks Consensus Estimate of $8.94. The bottom line reflected a rise of 30% from the year-ago quarter. Excluding other notable items, adjusted operating earnings were $9.54 per share.See the Zacks Earnings Calendar to stay ahead of market-making news.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 $1.07 billion or $10.58 per share, up substantially from $377 million or $3.57 per share in the prior-year quarter. Our estimate for net income (GAAP basis) was $955.4 million.For 2024, adjusted operating earnings were $35.07 per share, which jumped 19% year over year and beat the consensus estimate of $33.93. Excluding other notable items, the metric was $35.79 per share. Net income (GAAP basis) was $3.4 billion or $33.05 per share, up from $2.56 billion or $23.71 per share in 2023. Our estimate for net income (GAAP basis) was $3.29 billion.AMP’s Adjusted Revenues Improve, Expenses RiseAdjusted operating total net revenues for the reported quarter were $4.46 billion, up 13% year over year. Also, the top line beat the Zacks Consensus Estimate of $4.45 billion. Total GAAP net revenues were $4.5 billion, up 13% year over year.Adjusted operating expenses totaled $3.27 billion, rising 10%. We had projected adjusted expenses to be $3.29 billion. Total AUM and AUA increased 10% year over year to $1.52 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.53 trillion.Update on Ameriprise’s Share RepurchasesAmeriprise repurchased 1.1 million shares for $619 million in the reported quarter.Our Take on AmeripriseElevated 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. QuoteAMP 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 AMP’s PeersInvesco’s IVZ fourth-quarter 2024 adjusted earnings of 52 cents per share surpassed the Zacks Consensus Estimate of 49 cents. Moreover, the bottom line increased 10.6% from the prior-year quarter.The results primarily gained from a decline in adjusted expenses and higher adjusted net revenues. An increase in AUM balance on decent inflows was a positive for IVZ.BlackRock’s BLK fourth-quarter 2024 adjusted earnings of $11.93 per share surpassed the Zacks Consensus Estimate of $11.44. The figure reflects a rise of 23.5% from the year-ago quarter.BLK’s results benefited from a rise in revenues. AUM witnessed robust growth and touched the $11.55 trillion mark driven by net inflows, partially offset by market depreciation and negative forex impact. However, higher expenses and lower non-operating income acted as headwinds.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BlackRock (BLK): Free Stock Analysis Report Invesco Ltd. (IVZ): Free Stock Analysis Report Ameriprise Financial, Inc. (AMP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks