Ameriprise Financial Set to Release Q1 Earnings Report with Positive Projections
Ameriprise Financial, Inc. (AMP), headquartered in Minneapolis, Minnesota, offers a variety of financial products and services to both individual and institutional clients across the U.S. and internationally. The company has a market capitalization of $45.1 billion and operates through four primary segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other.
Upcoming Earnings Announcement and Analyst Expectations
The asset manager is preparing to disclose its first-quarter results on Thursday, April 24, before the markets open. Analysts anticipate that AMP will report an adjusted earnings per share (EPS) of $9.15, reflecting a 9.1% increase from the $8.39 reported in the same quarter last year. Over the past four quarters, Ameriprise has exceeded analysts’ bottom-line estimates three times, while missing projections once.
Fiscal Forecasts for 2025 and 2026
Looking ahead, Ameriprise is projected to achieve an adjusted EPS of $37.52 for the full fiscal year 2025, up 9.2% from the $34.35 reported in fiscal 2024. For fiscal 2026, the company’s earnings are expected to grow further, reaching approximately $40.67 per share, a year-over-year increase of 8.4%.
Stock Performance and Market Comparisons
Over the past year, AMP stock prices have risen 14.7%, significantly outperforming the S&P 500 Index, which has increased by 5.5% in the same period. However, Ameriprise’s stock has fallen short of the Financial Select Sector SPDR Fund’s (XLF) impressive 17.7% returns during the last year.
Recent Earnings Release and Its Impact
Despite better-than-expected performance, Ameriprise Financial’s stock dropped by 4.8% after disclosing its Q4 results on January 29. Factors contributing to solid results included strong growth in management and financial advice fees as well as distribution fees. The company’s non-GAAP revenue rose 13% year-over-year to approximately $4.5 billion, which surpassed market expectations. Additionally, adjusted operating earnings surged 24.4% year-over-year to $947 million, with an adjusted EPS of $9.36 exceeding consensus estimates by 4.7%.
Moreover, Ameriprise’s assets under management (AUM) climbed 8.3% year-over-year, reaching approximately $1.2 trillion. However, a quarter-on-quarter decline of 178 basis points marked the first such decrease in fiscal 2024, likely causing some investor concerns.
Analyst Ratings and Price Targets
The consensus rating for AMP stock is presently categorized as “Moderate Buy,” reflecting a cautiously optimistic sentiment among analysts. Out of the 14 analysts covering the stock, their recommendations consist of five “Strong Buys,” two “Moderate Buys,” six “Holds,” and one “Strong Sell.” The mean price target stands at $553.67, indicating a potential upside of 16.7% from current trading levels.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data in this article is intended for informative purposes only. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed in this article are solely those of the author and may not reflect those of Nasdaq, Inc.
