Ameriprise Financial (NYSE:AMP) Announces Earnings Results

Key Points

• Ameriprise missed quarterly estimates: EPS was $11.26 versus the $11.77 consensus, while revenue reached $5.08 billion, slightly below expectations but up 6.8% year over year.
• Wealth Management showed strong momentum: Client assets rose 8% to $1.2 trillion, wrap assets increased 12% to $729 billion, and advisor productivity reached a record $1.2 million per advisor.
• Shareholder returns remain a focus: Ameriprise declared a $1.70 quarterly dividend and authorized a $5.5 billion share-repurchase program, though a $74 million after-tax actuarial impact weighed on Retirement & Protection Solutions.

Ameriprise Financial (NYSE:AMP - Get Free Report) announced its quarterly earnings results on Thursday. The financial services provider reported $11.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $11.77 by ($0.51), FiscalAI reports. The firm had revenue of $5.08 billion during the quarter, compared to analysts' expectations of $5.10 billion. Ameriprise Financial had a net margin of 20.24% and a return on equity of 64.19%. The firm's revenue for the quarter was up 6.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $9.92 EPS.

Here are the key takeaways from Ameriprise Financial's conference call:

• Strong third-quarter results: Adjusted operating EPS excluding unlocking rose 22%, while net revenue increased 10% to $5.1 billion and return on equity exceeded 56%.
• Wealth Management showed solid underlying momentum, with client assets up 8% to $1.2 trillion, wrap assets up 12% to $729 billion, and advisor productivity rising 13% to a record $1.2 million per advisor.
• The company completed its largest financial-institution partnership to date by onboarding approximately 260 Huntington Bank advisors with $28 billion in client assets, with an additional 29 advisors and $4 billion expected in 2027.
• Asset Management delivered higher earnings and a 46% margin, but flows were driven largely by larger institutional mandates; management identified fixed income and the legacy mutual-fund business as areas needing improvement.
• The annual actuarial assumption update produced a $74 million after-tax unfavorable impact in Retirement & Protection Solutions, although management said the business remains stable and is performing within expectations.

Ameriprise Financial Stock Performance

Shares of NYSE AMP traded down $7.71 during midday trading on Friday, reaching $490.19. 426,873 shares of the company traded hands, compared to its average volume of 638,466. The stock has a 50-day moving average price of $520.69 and a 200 day moving average price of $493.07. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.71 and a quick ratio of 0.71. The company has a market cap of $44.07 billion, a price-to-earnings ratio of 11.82, a PEG ratio of 1.05 and a beta of 1.16. Ameriprise Financial has a 52 week low of $422.37 and a 52 week high of $572.56.

Ameriprise Financial Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Monday, November 9th will be paid a $1.70 dividend. This represents a $6.80 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date is Monday, November 9th. Ameriprise Financial's dividend payout ratio (DPR) is presently 16.40%.

Insider Transactions at Ameriprise Financial

In related news, EVP Deirdre Mcgraw sold 2,400 shares of the business's stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $558.28, for a total transaction of $1,339,872.00. Following the transaction, the executive vice president directly owned 3,373 shares of the company's stock, valued at approximately $1,883,078.44. The trade was a 41.57% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Dawn Brockman sold 472 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $558.93, for a total transaction of $263,814.96. Following the transaction, the senior vice president directly owned 713 shares in the company, valued at $398,517.09. The trade was a 39.83% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.60% of the company's stock.

Ameriprise Financial declared that its board has approved a stock repurchase program on Tuesday, September 29th that permits the company to repurchase $5.50 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 12.3% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board of directors believes its stock is undervalued.

Key Headlines Impacting Ameriprise Financial

Here are the key news stories impacting Ameriprise Financial this week:

• Positive Sentiment: Ameriprise authorized up to $5.5 billion in share repurchases through September 30, 2028. The program could support earnings per share and shareholder returns, particularly as the company’s return on equity rose above 56%. Ameriprise buyback authorization
• Positive Sentiment: The company declared a quarterly dividend of $1.70 per share, payable November 27 to shareholders of record on November 9. The annualized dividend is $6.80 per share, representing an indicated yield of approximately 1.4%. Ameriprise quarterly dividend
• Neutral Sentiment: Third-quarter revenue increased 6.8% year over year to $5.08 billion, while assets under management and administration also grew. However, reports differ on the exact adjusted EPS presentation: one report cited $12.07, while the company’s reported figure in the supplied earnings coverage was $11.26.
• Negative Sentiment: Using the reported $11.26 EPS figure, Ameriprise missed the $11.77 analyst consensus by $0.51, and revenue was slightly below the $5.10 billion estimate. Rising expenses weighed on results, making the earnings miss the clearest near-term reason for selling pressure. Ameriprise third-quarter earnings miss

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on AMP shares. The Goldman Sachs Group decreased their price objective on shares of Ameriprise Financial from $562.00 to $524.00 and set a "neutral" rating on the stock in a report on Friday, October 2nd. Zacks Research cut Ameriprise Financial from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 21st. Argus lifted their price target on shares of Ameriprise Financial from $534.00 to $590.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Raymond James Financial raised their price objective on shares of Ameriprise Financial from $582.00 to $638.00 and gave the stock a "strong-buy" rating in a report on Friday, August 21st. Finally, Royal Bank Of Canada increased their target price on shares of Ameriprise Financial from $560.00 to $595.00 in a research note on Friday, July 24th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $557.00.

Ameriprise Financial Company Profile

Ameriprise Financial, Inc NYSE: AMP is a diversified financial services company that provides advice, wealth management, asset management, insurance and retirement solutions. Through its network of financial advisors and digital platforms, the company serves individuals, families, businesses and institutions with financial planning, investment management and related services.

Its products and services include brokerage and advisory accounts, mutual funds and exchange-traded funds, retirement plans, annuities, life and long-term care insurance, banking services and financial planning.

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