Ameriprise Financial Earnings: Here’s Why Shares are Down Now

Ameriprise Financial Inc. (NYSE:AMP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Ameriprise Financial Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.66% to $1.59 in the quarter versus EPS of $1.45 in the year-earlier quarter.

Revenue: Rose 5.08% to $2.69 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ameriprise Financial Inc. reported adjusted EPS income of $1.59 per share. By that measure, the company beat the mean analyst estimate of $1.57. It missed the average revenue estimate of $2.72 billion.

Quoting Management: “Ameriprise delivered strong results in the first quarter,” said Jim Cracchiolo, chairman and chief executive officer. “Our fee-based businesses are leading our growth with a very good quarter for our wealth management business where we are generating strong advisor productivity and client net inflows.”
“Our operating return on equity hit a high of 16.4 percent in the quarter, and we see opportunities to continue to grow our return over time. Our business generates strong free cash flow that we’re returning to shareholders through share repurchases and dividends. In fact, we’re increasing our regular quarterly dividend, raising it another 16 percent.”

Key Stats (on next page)…

Revenue increased 0.26% from $2.68 billion in the previous quarter. EPS decreased 7.02% from $1.71 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.61 to a profit $1.62. For the current year, the average estimate has moved up from a profit of $6.56 to a profit of $6.6 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , ,  

More from The Cheat Sheet