Results: Ameriprise Financial, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

The first-quarter results for Ameriprise Financial, Inc. (NYSE:AMP) were released last week, making it a good time to revisit its performance. Revenues were US$4.1b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$9.46 were also better than expected, beating analyst predictions by 20%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Ameriprise Financial

Taking into account the latest results, the most recent consensus for Ameriprise Financial from eleven analysts is for revenues of US$17.2b in 2024. If met, it would imply a modest 3.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 4.5% to US$32.83. Before this earnings report, the analysts had been forecasting revenues of US$16.9b and earnings per share (EPS) of US$32.40 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$452, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Ameriprise Financial analyst has a price target of US$500 per share, while the most pessimistic values it at US$371. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 4.8% growth on an annualised basis. That is in line with its 5.4% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.7% annually. So it's pretty clear that Ameriprise Financial is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Ameriprise Financial's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$452, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Ameriprise Financial going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Ameriprise Financial that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.