Growth in AUM to Support Ameriprise This Earnings Season

Ameriprise Financial, Inc. AMP is scheduled to report fourth-quarter and full-year 2024 results on Jan. 29, after market close. Its quarterly 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 missed the Zacks Consensus Estimate. A rise in expenses hurt the results. Meanwhile, an increase in revenues and higher assets under management (AUM) and assets under administration (AUA) balances acted as tailwinds. Ameriprise has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, with the average beat being 0.99%.Ameriprise Financial, Inc. Price and EPS Surprise Ameriprise Financial, Inc. price-eps-surprise | Ameriprise Financial, Inc. QuoteQ4 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 $2.64 billion, suggesting a 15.7% rise from the prior-year quarter’s reported number. Our estimate for the same is $2.56 billion.The consensus estimate for distribution fees of $541.4 million indicates an increase of 15.4%. Our estimate for the same is $517.6 million. The consensus estimate for premiums, policy and contract charges is pegged at $406.9 million, indicating a rise of almost 1%. Our estimate for the same is pinned at $415.2 million.The consensus estimate for net investment income of $891.3 million suggests a marginal increase. Our estimate for the same is pinned at $966.6 million. The consensus mark for other revenues of $136.3 million indicates 10.8% growth. Our estimate for the same is pegged at $149.1 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 $1.52 trillion, indicating a jump of 12% from the year-ago quarter. Our estimate for the metric is $1.53 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 adjusted operating expenses is pegged at $3.29 billion, implying a year-over-year rise of 10.8%.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 +1.73%.Zacks Rank: The company currently carries a Zacks Rank of 3.The Zacks Consensus Estimate for the company’s earnings is pegged at $8.94 per share, which indicates a rise of 15.4% from the prior-year quarter’s reported number. The consensus estimate has been revised marginally lower over the past seven days.The consensus estimate for total sales is pegged at $4.45 billion, which indicates an 11.5% increase.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:Federated Hermes FHI is scheduled to release fourth-quarter and full-year 2024 earnings on Jan. 30. The company, which carries a Zacks Rank #3 at present, has an Earnings ESP of +2.85%. You can see the complete list of today’s Zacks #1 Rank (Strong  Buy) stocks here.FHI’s quarterly earnings estimates have been revised 1.1% lower to 96 cents over the past week.AllianceBernstein AB is scheduled to release fourth-quarter and full-year 2024 earnings on Feb. 6. The company, which carries a Zacks Rank #3 at present, has an Earnings ESP of +4.75%. AB’s quarterly earnings estimates have been unchanged at 81 cents over the past week.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Federated Hermes, Inc. (FHI): 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