Ameriprise misses Q3 profit estimates, revenue in line
Adjusted earnings per diluted share of $11.26 missed the $11.82 consensus estimate compiled by Finnhub, while total net revenues of $5.117 billion were in line with the $5.1 billion estimate.
Key takeaways
- Ameriprise Financial Inc. (AMP) said on Oct. 29 that third-quarter adjusted earnings per share were $11.26, missing the $11.82 consensus estimate compiled by Finnhub. Total net revenues were $5.117 billion, in line with the $5.1 billion estimate. GAAP net income per diluted share was $12.32.
Ameriprise Financial Inc. (AMP) said on Oct. 29 that third-quarter adjusted earnings per diluted share rose 14% to $11.26, missing the $11.82 consensus estimate compiled by Finnhub. Total net revenues were in line with the $5.1 billion estimate.
Here's how the company did:
- Adjusted EPS: $11.26 vs. $9.87 a year earlier, against $11.82 expected, according to Finnhub
- GAAP EPS: $12.32 vs. $9.33 a year earlier
- Total net revenues: $5.117 billion vs. $4.791 billion a year earlier, against $5.1 billion expected, according to Finnhub
The company said in a regulatory filing that assets under management, administration and advisement grew to $1.8 trillion, up 8% from a year earlier.
Adjusted operating earnings per diluted share, excluding unlocking, rose 22% to $12.07. The company said its annual unlocking review reduced adjusted operating earnings by $74 million, or $0.81 per share, in the quarter.
“Ameriprise delivered another strong quarter, reflecting the quality of our business, deep client relationships and focus on profitable growth,” Chairman and CEO Jim Cracchiolo said in the release.
Capital returns
The company returned over $1.0 billion to shareholders in the quarter, or 93% of operating earnings. It also announced a new share repurchase authorization of $5.5 billion through Sept. 30, 2028.
The company said it completed the transition of 258 Huntington advisors to Ameriprise, with $28 billion of client assets transferring through early 2027.
Segment results
Advice & Wealth Management pretax adjusted operating earnings rose 12% to $989 million. Adjusted operating net revenues rose 13% to $3.4 billion.
Asset Management pretax adjusted operating earnings rose 18% to $308 million. The segment recorded net outflows of $9.3 billion in the quarter.
Retirement & Protection Solutions pretax adjusted operating earnings fell 39% to $132 million. Excluding unlocking, pretax adjusted operating earnings were $198 million, down 1%.
The company expects its operating effective tax rate to be 20% to 22% for the full year 2026.