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Ameriprise (AMP) Q4 Earnings Beat Estimates, AUM Balance Dips

Ameriprise Financial’s AMP fourth-quarter 2022 adjusted operating earnings (excluding unlocking) of $6.94 per share handily surpassed the Zacks Consensus Estimate of $6.35. The bottom line reflects a rise of 13% from the year-ago quarter. We had projected the same to be $6.20.

Results were aided by lower expenses. However, the tough operating backdrop hurt the assets under management (AUM) and assets under administration (AUA) balance. This, in turn, hampered top-line growth.

After considering significant items, net income (GAAP basis) was $494 million or $4.43 per share, down from $701 million or $5.96 per share in the prior-year quarter.

In 2022, adjusted operating earnings of $25.14 outpaced the consensus estimate of $24.54 and grew 11% year over year. Net income (GAAP basis) was $2.56 billion or $22.51 per share, down from $2.76 billion or $23.00 per share in 2021.

Revenues & Expenses Decline

On an operating basis, quarterly adjusted total net revenues (excluding unlocking) were $3.65 billion, down 2% year over year. The top line, however, beat the Zacks Consensus Estimate of $3.48 billion. Our estimate for the metric was $3.37 billion.

On a GAAP basis, net revenues were $3.62 billion, declining 4%.

Adjusted operating expenses totaled $2.67 billion, which declined 5%. We had projected the same to be $2.51 billion.

Total AUM and AUA decreased 17% year over year to $1.18 trillion on market depreciation.

Share Repurchases

In the reported quarter, Ameriprise repurchased 1.6 million shares for $472 million.

Our Take

Elevated expenses (mainly due to technology upgrades) will likely continue to hurt AMP’s bottom line to some extent in the near term. Outflows in the company's Asset Management segment are another major concern. However, Ameriprise remains 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 and EPS Surprise
Ameriprise Financial, Inc. Price, Consensus and EPS Surprise

Ameriprise Financial, Inc. price-consensus-eps-surprise-chart | Ameriprise Financial, Inc. Quote

Ameriprise currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Asset Managers

BlackRock, Inc.’s BLK fourth-quarter 2022 adjusted earnings of $8.93 per share surpassed the Zacks Consensus Estimate of $7.99. The figure reflects a decrease of 16.4% from the year-ago quarter.

The quarterly results benefited from a decline in expenses. However, lower revenues and AUM balance were the major headwinds for BLK.

Invesco’s IVZ fourth-quarter 2022 adjusted earnings of 39 cents per share surpassed the Zacks Consensus Estimate of 36 cents. The bottom line, however, plunged 54.7% from the prior-year quarter. Our estimate for earnings was 33 cents.

Results benefited from a decline in operating expenses. On the other hand, lower AUM balance and long-term outflows hurt IVZ’s revenues.

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