AMP Earnings Prediction
The chart below shows how AMP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AMP sees a -1.95% change in stock price 10 days leading up to the earnings, and a -0.16% change 10 days following the report. On the earnings day itself, the stock moves by +0.12%. This data can give you a slight idea of what to expect for the next quarter's release.
AMP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.61B
26.10%
5.50%
Gross Margin
--
--
--
Operating Margin
53.62%
35.61%
2.15%
Net Margin
41.05%
125.30%
98.69%
EPS
10.56
195.80%
111.20%
No Data Available
AMP Earnings Analysis
Ameriprise Financial Inc Corporation (AMP.N) Earnings Conference Call
Positive
Asset Growth and Client Flows: Assets under management and administration grew to $1.5 trillion, up 10%, reflecting strong client flows and market appreciation.
Revenue Increase Driven by Growth: Total revenues reached $4.5 billion, an increase of 13% driven by strong asset growth and transactional activity.
Earnings Per Share Growth: Earnings per diluted share increased by 23% to $9.54, demonstrating robust underlying growth in the quarter.
Return on Equity Improvement: Return on equity improved to 52.7%, up from 49.7% a year ago, marking an industry-leading performance.
Wealth Management Asset Growth: Total client assets in Wealth Management reached an all-time high of $1 trillion, up 14% from the previous year, supported by strong client inflows of $11.3 billion.
Negative
Decline in Net Interest Income: Net interest income (NII) at the bank decreased sequentially and year-over-year, indicating potential challenges in maintaining profitability in the banking segment.
Excess Cash Holdings: Total cash balances, including third-party money market funds and broker CDs, were $85.4 billion, representing over 8% of client assets, which is double the historical level of 4%, suggesting clients are holding excess cash rather than investing.
Operating Expenses Increase: Adjusted operating expenses increased 18% in the quarter, with distribution expenses up 23%, reflecting higher costs associated with business growth and increased transactional activity.
Asset Management Challenges: In the Asset Management segment, net outflows of $3.9 billion were reported in the institutional category, indicating challenges in retaining assets despite overall revenue growth.
Earnings Growth Challenges: The company faced a $20 million impact from Fed funds rate cuts and portfolio repositioning, which could hinder future earnings growth.
AMP FAQs
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AMP Earning Call Sentiment
Earnings call transcript: Ameriprise Financial Q4 2024 beats EPS forecast, stock drops
AMP.N
1.16%Positive
The earnings call presents strong financial performance with significant growth in revenues, earnings, and client inflows. The company is executing a robust shareholder return strategy, maintaining high ROE, and announcing consistent capital returns. Although some management responses in the Q&A lacked detail, the overall positive financial metrics and strategic initiatives, including a strong share buyback program, outweigh these concerns. The stock is likely to see a positive reaction, especially considering the high capital returns and growth in key financial metrics.
