Ameriprise Financial Earnings: Misses Estimates as Profit Dips

S&P 500 (NYSE:SPY) component Ameriprise Financial Inc. (NYSE:AMP) reported its results for the second quarter. Ameriprise Financial provides financial planning, products, and services through its subsidiaries. The company offers solutions for its clients’ cash and liquidity, asset accumulation, income protection, and estate and wealth transfer needs.

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Ameriprise Financial Inc. Earnings Cheat Sheet

Results: Net income for the finance-investment management fell to $254 million ($1.13 per share) vs. $333 million ($1.33 per share) a year earlier. This is a decline of 23.7% from the year-earlier quarter.

Revenue: Fell 3.8% to $2.53 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ameriprise Financial Inc. fell short of the mean analyst estimate of $1.35 per share. It fell short of the average revenue estimate of $2.64 billion.

Quoting Management: “Our business results were solid considering the difficult markets during the quarter,” said Jim Cracchiolo, chairman and chief executive officer. “We experienced good advisor client and asset growth with strong net inflows in our fee-based products.”

Key Stats:

Revenue has fallen for the past three quarters. In the first quarter, revenue declined 3.5% to $2.56 billion while the figure fell 1.1% in the fourth quarter of the last fiscal year from the year earlier.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.45 versus a mean estimate of net income of $1.39 per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from $1.50 a share to $1.42 over the last ninety days. At $5.74 per share, the average estimate for the fiscal year has fallen from $5.93 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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