Ameriprise Financial, Inc. (AMP) Quarterly Earnings Preview

• Earnings Expectations: Wall Street anticipates an EPS of $9.12 and revenue of $4.41 billion for the upcoming quarterly release.
• Growth Drivers: Increase in quarterly revenues and earnings driven by a rise in assets under management (AUM) and assets under administration (AUA).
• Financial Metrics: Key financial ratios such as a P/E ratio of 13.64 and a debt-to-equity ratio of approximately 1.05 provide insights into AMP's valuation and financial leverage.

Ameriprise Financial, Inc. (NYSE:AMP) is a prominent player in the financial services sector, offering a range of services including asset management, financial planning, and insurance. As AMP prepares to release its quarterly earnings on April 24, 2025, Wall Street anticipates an earnings per share (EPS) of $9.12 and revenue of approximately $4.41 billion. This release is crucial for investors and analysts alike, as it provides insights into the company's financial health and future prospects.

Despite a subdued market performance, AMP is expected to report an increase in quarterly revenues and earnings compared to the previous year. This growth is largely driven by a rise in assets under management (AUM) balance, fueled by inflows. In the last quarter, AMP's earnings exceeded the Zacks Consensus Estimate, supported by increased revenues and higher AUM and assets under administration (AUA) balances. However, rising expenses have somewhat impacted the results.

Historically, AMP has a strong earnings surprise record, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 1.91%. The Zacks Consensus Estimate for AMP’s management and financial advice fees, which make up more than 60% of its revenue, is a key factor to watch in the upcoming earnings report. Analysts are forecasting revenues of $4.39 billion, representing a 7.1% year-over-year growth.

The consensus EPS estimate has been revised downwards by 3.8% over the past 30 days, indicating a reevaluation by analysts. Such revisions are significant as they often influence investor reactions and can impact the short-term price performance of the stock. AMP's stock movement will largely depend on whether the actual results surpass these expectations. If AMP exceeds the estimates, the stock price may rise; conversely, if it falls short, the stock could decline.

AMP's financial metrics provide further insights into its valuation. The company has a price-to-earnings (P/E) ratio of approximately 13.64, indicating the market's valuation of its earnings. Its price-to-sales ratio stands at about 2.60, reflecting the market's valuation of its revenue. Additionally, AMP's enterprise value to sales ratio is around 2.42, and its enterprise value to operating cash flow ratio is approximately 6.33. The earnings yield for AMP is about 7.33%, offering a perspective on the return on investment. The company's debt-to-equity ratio is approximately 1.05, indicating its financial leverage, while a current ratio of about 1.94 suggests its ability to cover short-term liabilities with short-term assets.