Ameriprise Financial Eyes Strong Q3 with Earnings Growth

As Ameriprise Financial prepares to announce its fiscal Q3 results, analysts project a profit increase, evidence of strong performance across segments and consistent earnings growth. This could position the stock favorably in the market ahead of the announcement.

Date: 07-10-2024

AI Rating: 7

The report discusses Ameriprise Financial, Inc. (AMP) and its upcoming fiscal Q3 earnings announcement. Analysts are optimistic about the company's performance, projecting an earnings per share (EPS) of $8.87, which represents a 15.5% increase from the previous year's $7.68 per share. This expectation is supported by the company's track record of consistently surpassing Wall Street estimates in the past four quarters.

In Q2, Ameriprise reported an EPS of $8.53, which slightly exceeded consensus estimates. This positive surprise was attributed to robust revenue growth across all segments and a noteworthy 12% increase in assets under management and administration, showcasing strong client net inflows and market appreciation.

For the fiscal year 2024, EPS expectations of $34.92 reflect a 14.6% increase from $30.46 in fiscal 2023, signaling investor confidence in sustained profit growth.

Despite missing the Wall Street revenue estimates of $4.19 billion in Q2, Ameriprise's adjusted revenue increased by 9% year-over-year, and its adjusted earnings grew by 15%. This growth, along with a strong YTD stock price movement of 28.1%, outpacing the S&P 500 and Financial Select Sector SPDR Fund, indicates a moderately optimistic outlook from analysts.

Although there has been a slight decrease in bullish ratings among analysts—now six suggest a 'Strong Buy' compared to three months ago—the overall sentiment remains positive, as the stock currently trades above its mean price target of $475.50.

Based on the analysis, the key points are:

Earnings Per Share (EPS): Expected EPS for Q3 is $8.87, up 15.5% year-over-year. Q2 EPS was $8.53, showing a positive trend.
Revenue Growth: Q2 revenue increased by 9% year-over-year despite missing estimates.
Market Performance: AMP shares have shown strong YTD performance, outperforming key indices.

Stocks: AMP SPX XLF