Ameriprise Financial (NYSE:AMP) Announces Quarterly Earnings Results, Misses Expectations By $0.51 EPS

Ameriprise Financial (NYSE:AMP) posted its earnings results on Thursday. The financial services provider reported $11.26 EPS for the quarter, missing the consensus estimate of $11.77 by ($0.51), FiscalAI reports. Ameriprise Financial had a net margin of 20.24% and a return on equity of 64.19%. The company had revenue of $5.08 billion for the quarter, compared to the consensus estimate of $5.10 billion. During the same period last year, the company posted $9.92 earnings per share. The firm’s revenue for the quarter was up 6.8% compared to the same quarter last year.

Here are the key takeaways from Ameriprise Financial’s conference call:

• Strong third-quarter results: Adjusted operating EPS excluding unlocking rose 22%, while net revenue increased 10% to $5.1 billion and return on equity exceeded 56%.
• Wealth Management showed solid underlying momentum, with client assets up 8% to $1.2 trillion, wrap assets up 12% to $729 billion, and advisor productivity rising 13% to a record $1.2 million per advisor.
• The company completed its largest financial-institution partnership to date by onboarding approximately 260 Huntington Bank advisors with $28 billion in client assets, with an additional 29 advisors and $4 billion expected in 2027.
• Asset Management delivered higher earnings and a 46% margin, but flows were driven largely by larger institutional mandates; management identified fixed income and the legacy mutual-fund business as areas needing improvement.
• The annual actuarial assumption update produced a $74 million after-tax unfavorable impact in Retirement & Protection Solutions, although management said the business remains stable and is performing within expectations.

Ameriprise Financial Price Performance

Ameriprise Financial stock traded down $6.72 during midday trading on Friday, reaching $491.18. The company had a trading volume of 783,050 shares, compared to its average volume of 640,251. The company has a market capitalization of $44.16 billion, a P/E ratio of 11.85, a P/E/G ratio of 1.05 and a beta of 1.16. Ameriprise Financial has a 12-month low of $422.37 and a 12-month high of $572.56. The firm’s fifty day simple moving average is $520.69 and its 200-day simple moving average is $493.07. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.71 and a quick ratio of 0.71.

Ameriprise Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Shareholders of record on Monday, November 9th will be issued a dividend of $1.70 per share. This represents a $6.80 annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Monday, November 9th. Ameriprise Financial’s dividend payout ratio (DPR) is presently 16.40%.

Ameriprise Financial declared that its board has authorized a stock repurchase program on Tuesday, September 29th that authorizes the company to repurchase $5.50 billion in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire up to 12.3% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Insider Activity at Ameriprise Financial

In other Ameriprise Financial news, SVP Dawn Brockman sold 472 shares of the business’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $558.93, for a total transaction of $263,814.96. Following the completion of the transaction, the senior vice president owned 713 shares in the company, valued at approximately $398,517.09. The trade was a 39.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Deirdre Mcgraw sold 2,400 shares of the stock in a transaction that occurred on Thursday, August 6th. The shares were sold at an average price of $558.28, for a total transaction of $1,339,872.00. Following the completion of the transaction, the executive vice president owned 3,373 shares of the company’s stock, valued at $1,883,078.44. This trade represents a 41.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.60% of the stock is currently owned by insiders.

Analyst Ratings Changes

AMP has been the topic of a number of recent research reports. Bank of America cut Ameriprise Financial from a “buy” rating to an “underperform” rating and cut their target price for the stock from $570.00 to $445.00 in a report on Monday, October 19th. The Goldman Sachs Group lowered their price objective on shares of Ameriprise Financial from $562.00 to $524.00 and set a “neutral” rating on the stock in a report on Friday, October 2nd. Raymond James Financial raised their price objective on shares of Ameriprise Financial from $582.00 to $638.00 and gave the company a “strong-buy” rating in a research note on Friday, August 21st. Piper Sandler boosted their target price on shares of Ameriprise Financial from $518.00 to $561.00 in a research report on Thursday, July 23rd. Finally, Evercore dropped their price target on shares of Ameriprise Financial from $625.00 to $623.00 in a research report on Friday, July 24th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, five have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $557.00.

Key Stories Impacting Ameriprise Financial

Here are the key news stories impacting Ameriprise Financial this week:

• Positive Sentiment: Ameriprise authorized a new $5.5 billion share-repurchase program running through September 30, 2028. The buyback, combined with return on equity above 56%, could support per-share earnings and signal management’s confidence in the business. Ameriprise outlines $5.5B buyback authorization
• Positive Sentiment: The company declared its regular $1.70 quarterly dividend, or $6.80 annually, representing an indicated yield of approximately 1.4%. The dividend is payable November 27 to shareholders of record November 9. Ameriprise Financial Declares Regular Quarterly Dividend
• Positive Sentiment: Bank of America reaffirmed its Buy rating, while other commentary argued AMP may be materially undervalued despite concerns about advisor departures and artificial-intelligence disruption. Bank of America reaffirmed Buy rating
• Neutral Sentiment: Analyst opinion remains mixed: BMO Capital maintained a Hold rating, indicating that valuation and execution risks may limit near-term upside. BMO Capital maintained Hold rating
• Negative Sentiment: Third-quarter results were mixed. Revenue rose 6.8% year over year to about $5.08 billion, but the reported $11.26 EPS missed the $11.77 consensus estimate. Rising expenses weighed on profitability, even as assets under management and revenue increased. Ameriprise Q3 earnings miss estimates

Ameriprise Financial Company Profile

Ameriprise Financial, Inc (NYSE:AMP) is a diversified financial services company that provides advice, wealth management, asset management, insurance and retirement solutions. Through its network of financial advisors and digital platforms, the company serves individuals, families, businesses and institutions with financial planning, investment management and related services.

Its products and services include brokerage and advisory accounts, mutual funds and exchange-traded funds, retirement plans, annuities, life and long-term care insurance, banking services and financial planning.