Ameriprise Earnings Top Analysts’ Expectations

Ameriprise Earnings Top Analysts’ Expectations

The Minneapolis-based financial services giant credits fee-based business for success and growth.

Ameriprise Financial reported a 10 percent, or $2.10 a share, increase in operating earnings for its third quarter this week to beat analysts’ expectations for the period. Operating earnings closed in at $407 million, which is a 21 percent increase from one year ago.
 
The Minneapolis-based investment firm also reported $420 million in revenue, or $2.17 a share, compared to $381 million, or $1.86 per share, in the prior-year quarter. “Our fee-based businesses drove our growth,” CEO Jim Cracchiolo said in an earnings conference call Wednesday. Cracchiolo also said Ameriprise’s performance fees generated around $9 million dollars during the third quarter.
 
Ameriprise, one of Minnesota’s largest publicly traded companies, also reported an increase of 8 percent, to nearly $800 million, in operating net revenues driven by client net inflows and market appreciation.
 
“With our financial strength and cash flow generation, we continue to return significant capital to shareholders with more than $1 billion returned so far this year,” Cracchiolo said.
 
After the recent third quarter news, Ameriprise announced a quarterly dividend of 58 cents per common share, which is expected to be paid Nov. 21 to shareholders.
 
Shares of the company’s stock were up more than 4.4 percent from the beginning of the week at $123.76 per share as the markets closed Wednesday.

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