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Minneapolis, Minnesota-based Ameriprise Financial, Inc. (AMP) provides various financial products and services to individual and institutional clients in the U.S. and internationally. With a market cap of $45.1 billion, Ameriprise operates through Advice & Wealth Management, Asset Management, Retirement & Protection Solutions, and Corporate & Other segments.
The asset manager is gearing up to announce its first-quarter results before the markets open on Thursday, Apr. 24. Ahead of the event, analysts expect AMP to report an adjusted EPS of $9.15, up 9.1% from $8.39 reported in the year-ago quarter. While AMP has surpassed the Street’s bottom-line estimates thrice over the past four quarters, it missed the projections on one other occasion.
For the full fiscal 2025, AMP is expected to report an adjusted EPS of $37.52, up 9.2% from $34.35 reported in fiscal 2024. In fiscal 2026, its earnings are expected to further grow 8.4% year-over-year to $40.67 per share.
AMP stock prices have gained 14.7% over the past 52 weeks, outpacing the S&P 500 Index’s ($SPX) 5.5% uptick during the same time frame. However, the stock has slightly underperformed the Financial Select Sector SPDR Fund’s (XLF) 17.7% returns over the past year.
Despite delivering better-than-expected results, Ameriprise Financial’s stock prices dropped 4.8% in the trading session after the release of its Q4 results on Jan. 29. Driven by solid growth in management and financial advice fees and distribution fees, the company’s non-GAAP topline increased 13% year-over-year to approximately $4.5 billion, exceeding the Street’s expectations. Meanwhile, its adjusted operating earnings increased 24.4% year-over-year to $947 million and its adjusted EPS of $9.36 surpassed the consensus estimates by 4.7%.
Furthermore, Ameriprise’s AUM increased 8.3% year-over-year to approximately $1.2 trillion. However, on a quarter-on-quarter basis, AUM dropped by 178 bps, marking the first quarter-on-quarter drop in AUM in fiscal 2024, which likely unsettled investor confidence.
The consensus view on AMP stock is cautiously bullish, with a “Moderate Buy” rating overall. Of the 14 analysts covering the stock, opinions include five “Strong Buys,” two “Moderate Buys,” six “Holds,” and one “Strong Sell.” Its mean price target of $553.67 suggests a 16.7% upside potential from current price levels.
