Ameriprise Financial Earnings: Solid Quarter

Ameriprise Financial Inc. (NYSE:AMP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. Shares are up 1.18%.

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Ameriprise Financial Inc. Earnings Cheat Sheet

Results: Net income increased 53.36% to $388 million ($1.8 per diluted share) in the quarter versus a net gain of $253 million in the year-earlier quarter.

Revenue: Rose 0.27% to $2.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ameriprise Financial Inc. reported adjusted net income of $1.8 per share. By that measure, the company beat the mean analyst estimate of $1.47. It missed the average revenue estimate of $2.65 billion.

Quoting Management:

“We had a solid quarter led by strong results in our advice and wealth management business,” said Jim Cracchiolo, chairman and chief executive officer. “We reported a record high for assets under management and administration driven by strong client net inflows into fee-based accounts and equity market appreciation. We’re executing our strategy well and maintaining tight expenses to offset headwinds from low interest rates…

…We continue to generate significant free cash flow and benefit from our strong balance sheet and capital position. Our operating return on equity ended the year above 16 percent and we returned more than 130 percent of our full-year operating earnings to shareholders through ongoing share repurchases and dividends.“

Key Stats:

Revenue increased 4.88% from $2.48 billion in the previous quarter. Net income increased 124.28% from $173 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.57 to a profit $1.55. For the current year, the average estimate has moved down from a profit of $5.39 to a profit of $5.35 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)