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

Ameriprise Financial (NYSE:AMP) announced its quarterly earnings results 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. Ameriprise Financial had a return on equity of 69.94% and a net margin of 20.99%. The company had revenue of $5.08 billion for the quarter, compared to the consensus estimate of $5.10 billion. During the same quarter last year, the company posted $9.92 EPS. The company’s quarterly revenue 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 Stock Performance

Shares of NYSE:AMP traded down $6.72 on Friday, hitting $491.18. The company had a trading volume of 783,050 shares, compared to its average volume of 560,350. The stock has a market cap of $44.16 billion, a price-to-earnings ratio of 11.05, a P/E/G ratio of 1.07 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 current ratio of 0.68, a quick ratio of 0.71 and a debt-to-equity ratio of 1.13. The stock has a 50 day moving average price of $519.56 and a 200 day moving average price of $492.98.

Ameriprise Financial Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Stockholders of record on Monday, November 9th will be paid a $1.70 dividend. The ex-dividend date of this dividend is Monday, November 9th. This represents a $6.80 dividend on an annualized basis and a dividend yield of 1.4%. Ameriprise Financial’s dividend payout ratio is 15.30%.

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

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on AMP shares. Royal Bank Of Canada raised their price objective on Ameriprise Financial from $560.00 to $595.00 in a research note on Friday, July 24th. Weiss Ratings upgraded Ameriprise Financial from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, September 3rd. Argus raised their price objective on Ameriprise Financial from $534.00 to $590.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. BMO Capital Markets dropped their price objective on Ameriprise Financial from $560.00 to $520.00 and set a “market perform” rating for the company in a research note on Tuesday, October 6th. Finally, Jefferies Financial Group reduced their price target on shares of Ameriprise Financial from $645.00 to $638.00 in a research report on Monday, October 12th. One investment analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $557.00.

Insider Activity at Ameriprise Financial

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

Trending Headlines about 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 2028. The buyback, combined with return on equity above 56%, could support per-share earnings and signal management’s confidence in the business. Ameriprise buyback authorization
• Positive Sentiment: The company declared its regular $1.70 quarterly dividend, equal to $6.80 annually and a yield of roughly 1.4%. The dividend provides continued shareholder income, although the ex-dividend date is November 9, 2026. Ameriprise dividend announcement
• Positive Sentiment: Bank of America Securities reaffirmed its Buy rating, while an investment analysis argued that AMP may be substantially undervalued despite concerns about advisor departures. Bank of America Buy rating
• Neutral Sentiment: Analyst opinion remains mixed: BMO Capital maintained a Hold rating, contrasting with Bank of America’s bullish view. BMO Hold rating
• Negative Sentiment: The main pressure is the reported third-quarter earnings miss: EPS of $11.26 fell short of the $11.77 consensus, while revenue of $5.08 billion was slightly below expectations. Revenue still grew 6.8% year over year, but higher expenses weighed on results. Ameriprise third-quarter earnings
• Negative Sentiment: Some coverage highlights advisor attrition and potential disruption from artificial intelligence, adding uncertainty to Ameriprise’s growth outlook despite its valuation and buyback appeal.

About Ameriprise Financial

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.