Growth in AUM to Support Ameriprise This Earnings Season

Ameriprise Financial, Inc. AMP is scheduled to report third-quarter 2024 results on Oct. 23, after market close. Its revenues and earnings are anticipated to have increased year over year.See the Zacks Earnings Calendar to stay ahead of market-making news.In the last reported quarter, AMP’s earnings surpassed the Zacks Consensus Estimate. Results were aided by a rise in revenues and higher assets under management (AUM) and assets under administration (AUA) balances. However, increased expenses were an undermining factor.Ameriprise has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average beat being 1.55%.Ameriprise Financial, Inc. Price and EPS Surprise Ameriprise Financial, Inc. price-eps-surprise | Ameriprise Financial, Inc. QuoteThe Zacks Consensus Estimate for the company’s earnings is pegged at $8.91 per share, which indicates a rise of 16% from the prior-year quarter’s reported number. The consensus estimate has been revised marginally upward over the past seven days.The consensus estimate for total sales is pegged at $4.31 billion, which indicates a 10.2% increase.Q3 Estimates & Key Factors to Note for AMPThe Zacks Consensus Estimate for AMP’s management and financial advice fees (constituting more than 60% of total net revenues) is pegged at $2.51 billion, suggesting a 9.9% rise from the prior-year quarter’s reported number. Our estimate for the same is $2.45 billion.The consensus estimate for distribution fees of $531.3 million indicates an increase of 14.7%. Our estimate for the same is $507.1 million. The consensus estimate for premiums, policy and contract charges is pegged at $393.6 million, indicating a rise of almost 1%. Our estimate for the same is pinned at $393.4 million.The consensus estimate for net investment income of $878.6 million suggests an 8.6% increase. Our estimate for the same is pinned at $934.9 million. The consensus mark for other revenues of $129.6 million indicates 2% growth. Our estimate for the same is pegged at $128.2 million.Supported by overall asset inflows on the back of favorable markets, the company’s total AUM and AUA balance is expected to have improved. The Zacks Consensus Estimate for total AUM and AUA is pegged at $1.46 trillion, indicating a jump of 18% from the year-ago quarter. Our estimate for the metric is $1.41 trillion.While Ameriprise’s initiatives to focus on cost management have led to controlled general and administration expenses, overall costs are anticipated to have been elevated in the to-be-reported quarter due to costs related to technology upgrades and hirings. Our estimate for total expenses is pegged at $3.07 billion, implying a year-over-year rise of 9.3%.Earnings Whispers for AmeripriseAccording to our quantitative model, the chances of Ameriprise beating the Zacks Consensus Estimate for earnings this time are high. This is because it has the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better.You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Earnings ESP: Ameriprise has an Earnings ESP of +0.44%.Zacks Rank: The company currently carries a Zacks Rank of 2 (Buy).Ameriprise’s Peers Worth a LookHere are a couple of other asset managers that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this time:SEI Investments SEIC is scheduled to release third-quarter 2024 earnings on Oct. 23. The company, which carries a Zacks Rank #2 at present, has an Earnings ESP of +0.62%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.SEIC’s quarterly earnings estimates have been unchanged at $1.07 over the past week.AllianceBernstein AB is scheduled to release third-quarter 2024 earnings on Oct. 24. The company, which sports a Zacks Rank #1 at present, has an Earnings ESP of +2.74%. AB’s quarterly earnings estimates have been unchanged at 73 cents over the past weekZacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Ameriprise Financial, Inc. (AMP): Free Stock Analysis Report AllianceBernstein Holding L.P. (AB): Free Stock Analysis Report SEI Investments Company (SEIC): 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