S&P 500 (NYSE:SPY) component Ameriprise Financial, Inc. (NYSE:AMP) reported its results for the second quarter. Ameriprise Financial, Inc. 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.
Ameriprise Financial Earnings Cheat Sheet for the Second Quarter
Results: Net income for the asset management company rose to $309 million ($1.25 per share) vs. $259 million (98 cents per share) in the same quarter a year earlier. This marks a rise of 19.3% from the year earlier quarter.
Revenue: Rose 6.5% to $2.62 billion.
Actual vs. Wall St. Expectations: AMP fell short of the mean analyst estimate of $1.33 per share.
Quoting Management: “Ameriprise Financial continued to generate strong revenue growth as well as higher earnings and returns in the second quarter,” said Jim Cracchiolo, chairman and chief executive officer. “In fact, our operating return on equity reached an all-time high of 14.5 percent.” “Our advisory and asset management businesses are generating strong results. Advisor productivity reached another record high, and we’re driving good asset flows and client activity. Our asset management results in the quarter demonstrate the benefits of our increased scale and geographic reach, with strong earnings growth and improved retail and institutional flows.”
The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 12.6% and in the fourth quarter of the last fiscal year, the figure rose 18.1%.
The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.35 versus a mean estimate of net income of $1.33 per share.
Competitors to Watch: Financial Engines Inc (NASDAQ:FNGN), Oppenheimer Hldgs. Inc. (NYSE:OPY), Raymond James Financial, Inc. (NYSE:RJF), LPL Investment Hldgs. Inc. (NASDAQ:LPLA), Principal Financial Group, Inc. (NYSE:PFG), Stifel Financial Corp. (NYSE:SF), Prudential Financial, Inc. (NYSE:PRU), MetLife, Inc. (NYSE:MET), Bank of America Corp. (NYSE:BAC), and TD Ameritrade Holding Corp. (NASDAQ:AMTD).
(Source: Xignite Financials)