Ameriprise Financial’s AMP fourth-quarter 2024 adjusted operating earnings of $9.36 per share handily surpassed the Zacks Consensus Estimate of $8.94. The bottom line reflected a rise of 30% from the year-ago quarter. Excluding other notable items, adjusted operating earnings were $9.54 per share.
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Results benefited from higher revenues and a solid improvement in assets under management (AUM) and assets under administration (AUA) balances. However, an increase in expenses was a headwind.
After considering significant items, net income (GAAP basis) was $1.07 billion or $10.58 per share, up substantially from $377 million or $3.57 per share in the prior-year quarter. Our estimate for net income (GAAP basis) was $955.4 million.
For 2024, adjusted operating earnings were $35.07 per share, which jumped 19% year over year and beat the consensus estimate of $33.93. Excluding other notable items, the metric was $35.79 per share. Net income (GAAP basis) was $3.4 billion or $33.05 per share, up from $2.56 billion or $23.71 per share in 2023. Our estimate for net income (GAAP basis) was $3.29 billion.
AMP’s Adjusted Revenues Improve, Expenses Rise
Adjusted operating total net revenues for the reported quarter were $4.46 billion, up 13% year over year. Also, the top line beat the Zacks Consensus Estimate of $4.45 billion. Total GAAP net revenues were $4.5 billion, up 13% year over year.
Adjusted operating expenses totaled $3.27 billion, rising 10%. We had projected adjusted expenses to be $3.29 billion.
Total AUM and AUA increased 10% year over year to $1.52 trillion. The rise reflected strong client net inflows and market appreciation. Our estimate for the metric was $1.53 trillion.
Update on Ameriprise’s Share Repurchases
Ameriprise repurchased 1.1 million shares for $619 million in the reported quarter.
Our Take on Ameriprise
Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line. However, Ameriprise is well-positioned for impressive top-line growth on the back of its robust AUM balance and business-restructuring initiatives.
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise
Ameriprise Financial, Inc. price-consensus-eps-surprise-chart | Ameriprise Financial, Inc. Quote
AMP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of AMP’s Peers
Invesco’s IVZ fourth-quarter 2024 adjusted earnings of 52 cents per share surpassed the Zacks Consensus Estimate of 49 cents. Moreover, the bottom line increased 10.6% from the prior-year quarter.
The results primarily gained from a decline in adjusted expenses and higher adjusted net revenues. An increase in AUM balance on decent inflows was a positive for IVZ.
BlackRock’s BLK fourth-quarter 2024 adjusted earnings of $11.93 per share surpassed the Zacks Consensus Estimate of $11.44. The figure reflects a rise of 23.5% from the year-ago quarter.
BLK’s results benefited from a rise in revenues. AUM witnessed robust growth and touched the $11.55 trillion mark driven by net inflows, partially offset by market depreciation and negative forex impact. However, higher expenses and lower non-operating income acted as headwinds.
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Invesco Ltd. (IVZ) : Free Stock Analysis Report
Ameriprise Financial, Inc. (AMP) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
