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

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

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 Stock Down 1.3%

Ameriprise Financial stock traded down $6.72 during mid-day trading on Friday, hitting $491.18. The company had a trading volume of 783,050 shares, compared to its average volume of 640,251. The business has a fifty day moving average of $520.69 and a 200 day moving average of $493.07. The stock has a market cap of $44.16 billion, a price-to-earnings ratio of 11.85, a PEG ratio of 1.05 and a beta of 1.16. Ameriprise Financial has a 1 year low of $422.37 and a 1 year high of $572.56. The company has a quick ratio of 0.71, a current ratio of 0.71 and a debt-to-equity ratio of 0.99.

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%.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. Evercore lowered their price target on shares of Ameriprise Financial from $625.00 to $623.00 in a research note on Friday, July 24th. Royal Bank Of Canada raised their target price on shares of Ameriprise Financial from $560.00 to $595.00 in a report on Friday, July 24th. Morgan Stanley decreased their price target on Ameriprise Financial from $489.00 to $483.00 and set an “underweight” rating on the stock in a research note on Friday, October 9th. Raymond James Financial upped their target price on Ameriprise Financial from $582.00 to $638.00 and gave the stock a “strong-buy” rating in a report on Friday, August 21st. Finally, Keefe, Bruyette & Woods upped their target price on Ameriprise Financial from $515.00 to $545.00 and gave the company a “market perform” rating in a research report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $557.00.

Ameriprise Financial declared that its board has approved a share repurchase plan on Tuesday, September 29th that allows the company to buy back $5.50 billion in outstanding shares. This repurchase authorization allows the financial services provider to buy up to 12.3% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its shares are undervalued.

Ameriprise Financial News Roundup

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

Insider Buying and Selling at Ameriprise Financial

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

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.