Ameriprise Financial (NYSE:AMP) Issues Quarterly Earnings Results, Misses Estimates By $0.51 EPS

Ameriprise Financial (NYSE:AMP) announced its quarterly earnings data on Thursday. The financial services provider reported $11.26 earnings per share for the quarter, missing the consensus estimate of $11.77 by ($0.51), FiscalAI reports. The firm had revenue of $5.08 billion for the quarter, compared to the consensus estimate of $5.10 billion. Ameriprise Financial had a return on equity of 64.19% and a net margin of 20.24%. The business’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $9.92 earnings per share.

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 Down 1.5%

Ameriprise Financial stock traded down $7.71 during midday trading on Friday, reaching $490.19. The stock had a trading volume of 426,873 shares, compared to its average volume of 638,466. Ameriprise Financial has a 1-year low of $422.37 and a 1-year high of $572.56. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.71 and a current ratio of 0.71. The firm’s fifty day simple moving average is $520.69 and its 200-day simple moving average is $493.07. The stock has a market capitalization of $44.07 billion, a P/E ratio of 11.82, a price-to-earnings-growth ratio of 1.05 and a beta of 1.16.

Ameriprise Financial Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Monday, November 9th will be given a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Monday, November 9th. Ameriprise Financial’s dividend payout ratio is currently 16.40%.

Insider Transactions at Ameriprise Financial

In other Ameriprise Financial news, SVP Dawn M. Brockman sold 472 shares of the business’s stock in a transaction that occurred 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 owned 713 shares of the company’s stock, valued at $398,517.09. The trade was a 39.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Deirdre Mcgraw sold 2,400 shares of the stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $558.28, for a total value of $1,339,872.00. Following the completion of the sale, the executive vice president owned 3,373 shares in the company, valued at approximately $1,883,078.44. This trade represents a 41.57% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.60% of the company’s stock.

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 research firms have weighed in on AMP. Bank of America lowered Ameriprise Financial from a “buy” rating to an “underperform” rating and cut their target price for the company from $570.00 to $445.00 in a research note on Monday, October 19th. Piper Sandler upped their price objective on shares of Ameriprise Financial from $518.00 to $561.00 in a research report on Thursday, July 23rd. Zacks Research cut Ameriprise Financial from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 21st. BMO Capital Markets dropped their price target on Ameriprise Financial from $560.00 to $520.00 and set a “market perform” rating on the stock in a research report on Tuesday, October 6th. Finally, Raymond James Financial boosted their price objective on Ameriprise Financial from $582.00 to $638.00 and gave the company a “strong-buy” rating in a research report on Friday, August 21st. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Ameriprise Financial currently has a consensus rating of “Hold” and an average target price of $557.00.

Ameriprise Financial declared that its board has initiated a share buyback program on Tuesday, September 29th that permits the company to repurchase $5.50 billion in shares. This buyback authorization permits the financial services provider to reacquire up to 12.3% of its shares through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its shares are undervalued.

About Ameriprise Financial

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.