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Minneapolis, Minnesota-based Ameriprise Financial, Inc. (AMP) provides various financial products and services to individual and institutional clients in the United States and internationally. With a market cap of $51.7 billion, Ameriprise operates through Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other segments. The asset manager is expected to announce its fourth-quarter earnings on Wednesday, Jan. 22.
Ahead of the event, analysts expect AMP to report an adjusted profit of $9.07 per share, up 17% from $7.75 per share reported in the year-ago quarter. The company has a mixed earnings surprise history. It surpassed Wall Street’s bottom-line estimates thrice over the past four quarters while missing on one other occasion. Its adjusted EPS for the last reported quarter surged nearly 15% year-over-year to $8.83, but missed analysts' estimates by a small margin.
For fiscal 2024, AMP expected to report an adjusted EPS of $34.06, up 11.8% from $30.46 in fiscal 2023. While in fiscal 2025, its earnings are expected to surge 14.3% year-over-year to $38.92.
AMP stock prices soared over 39.8% in the past year, significantly outpacing the S&P 500 Index’s ($SPX) 23.7% returns and the Financial Select Sector SPDR Fund’s (XLF) 27.7% surge during the same time frame.
Ameriprise Financial’s stock prices dropped 3.1% in the trading session after the release of its Q3 earnings on Oct. 23 as the company’s earnings missed Wall Street’s expectation. However, Ameriprise’s overall performance has remained robust. Driven by strong client net inflows and asset appreciation, its assets under management and administration surged 22.2% year-over-year, reaching $1.5 trillion. The company has also continued to generate strong revenues and earnings growth across its business. AMP’s total net revenues grew over 12% year-over-year to $4.4 billion. Meanwhile, its adjusted operating earnings grew over 11.1% year-over-year to $828 million.
Additionally, Ameriprise has continued to report strong free cash flow generation which enables the company to navigate market cycles and consistently generate strong results and return capital to shareholders. During the quarter, the company returned $713 million of capital to investors in the form of share repurchases and dividends, demonstrating its commitment to shareholders.
The consensus opinion on AMP stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 13 analysts covering the stock, five recommend “Strong Buy,” one advises “Moderate Buy,” six suggest “Hold,” and one advocates a “Strong Sell” rating. Its mean price target of $572 represents a 7.9% premium to current price levels.
