Ameriprise Financial Meets on Revenues, Misses on EPS

Ameriprise Financial (NYS: AMP) reported earnings Feb. 1. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Ameriprise Financial met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share improved slightly.

Gross margins grew, operating margins grew, net margins dropped.

Revenue details
Ameriprise Financial booked revenue of $2.59 billion. The seven analysts polled by S&P Capital IQ wanted to see a top line of $2.60 billion. Sales were 3.7% lower than the prior-year quarter's $2.69 billion.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $1.33. The 13 earnings estimates compiled by S&P Capital IQ anticipated $1.37 per share on the same basis. GAAP EPS of $1.11 for Q4 were 2.8% higher than the prior-year quarter's $1.08 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 78.5%, 2,390 basis points better than the prior-year quarter. Operating margin was 26.2%, 140 basis points better than the prior-year quarter. Net margin was 9.8%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.63 billion. On the bottom line, the average EPS estimate is $1.41.

Next year's average estimate for revenue is $10.96 billion. The average EPS estimate is $5.95.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ameriprise Financial is outperform, with an average price target of $61.20.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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