Ameriprise Financial Readies for Q4 Earnings Announcement
Minneapolis, Minnesota’s Ameriprise Financial, Inc. (AMP) is set to unveil its fourth-quarter earnings on January 22. With a market capitalization of $51.7 billion, Ameriprise offers a range of financial services for both individual and institutional clients across the globe. The company operates in four segments: Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other.
Analysts Predict Strong Earnings Growth
Analysts project that Ameriprise will report an adjusted profit of $9.07 per share for the upcoming quarter. This figure marks a 17% increase from the $7.75 per share recorded in the same quarter last year. Over the past four quarters, the company has had a somewhat mixed earnings performance, notching three surprises above Wall Street estimates while falling short on one occasion. For its last reported quarter, Ameriprise’s adjusted earnings per share (EPS) climbed nearly 15% year-over-year to $8.83, although it did miss expectations by a slight margin.
Looking ahead, for fiscal 2024, the company anticipates posting an adjusted EPS of $34.06, which represents an 11.8% increase from the $30.46 reported in fiscal 2023. In fiscal 2025, earnings projections continue to rise with an expected 14.3% growth to $38.92.
A Strong Year for Ameriprise Stock
Over the last year, Ameriprise’s stock has surged by 39.8%, significantly outperforming both the S&P 500 Index, which saw returns of 23.7%, and the Financial Select Sector SPDR Fund’s (XLF) 27.7% gain within the same period.
Recent Performance and Analysts’ Outlook
After reporting its Q3 earnings on October 23, Ameriprise’s stock price fell by 3.1% due to a miss in earnings expectations. However, the company’s overall performance remains strong, bolstered by solid client net inflows and asset appreciation. Its assets under management and administration increased by 22.2% year-over-year, surpassing $1.5 trillion. Revenues and earnings also climbed, with total net revenues jumping over 12% year-over-year to $4.4 billion and adjusted operating earnings rising by more than 11.1% to $828 million.
Moreover, free cash flow generation is doing well, allowing Ameriprise to effectively navigate market fluctuations while returning capital to investors. During the recent quarter, the company returned $713 million to shareholders through dividends and share repurchases, highlighting its dedication to returning value to investors.
The consensus among analysts for AMP stock leans positively, holding a “Moderate Buy” rating overall. From 13 analysts, five favor a “Strong Buy,” one recommends “Moderate Buy,” six suggest “Hold,” and one rates it a “Strong Sell.” The average price target for the stock is set at $572, representing a potential 7.9% upside from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart
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