Ameriprise Financial Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Ameriprise Financial (NYSE:AMP) will unveil its latest earnings on Wednesday, October 24, 2012. 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.

Ameriprise Financial Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.36 per share, a rise of 30.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.42. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 9.2% versus last year to $5.46.

Past Earnings Performance: Last quarter, the company fell short of estimates by 6 cents, coming in at profit of $1.13 per share against a mean estimate of net income of $1.33. The company topped expectations in the first quarter.

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A Look Back: In the second quarter, profit fell 27.8% to $223 million (99 cents a share) from $309 million ($1.23 a share) the year earlier, missing analyst expectations. Revenue fell 4.2% to $2.52 billion from $2.63 billion.

Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $10.94 (22.8%), from $47.98 to $58.92. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 23, 2012, when shares rose for six straight days, increasing 6.5% (+$3.35) over that span.

Wall St. Revenue Expectations: On average, analysts predict $2.65 billion in revenue this quarter, a rise of 5.6% from the year-ago quarter. Analysts are forecasting total revenue of $10.55 billion for the year, a rise of 5% from last year’s revenue of $10.05 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 1.1% in the fourth quarter of the last fiscal year and 3.5% in first quarter before falling again in the second quarter.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 1.2% in the first quarter before dropping in the second quarter.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

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

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