NYSE$AMP

Ameriprise Financial Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Ameriprise reported strong organic growth and record assets despite headwinds from low interest rates.

Ameriprise Financial reported an excellent quarter with adjusted operating earnings per diluted share of $4.53, up 8% year-over-year, driven by strong organic growth. Assets under management and administration reached a record high of $1.1 trillion, and the company generated strong flows of $14.9 billion into wrap accounts and Asset Management. The advisor network grew to 9,922, and the company returned $502 million to shareholders.

  • Adjusted operating earnings per diluted share was $4.53, up 8 percent from the prior year period.
  • GAAP net income per diluted share was $1.43, which was negatively impacted by market changes.
  • Adjusted operating net revenue was $3.1 billion, a 3 percent increase driven by strong organic growth.
  • Assets under management and administration reached $1.1 trillion, a record high.

Headline financials

Total Revenue

$3.18B

Previous: $3.29B-3.2%
EPS (adj)

$4.53

Previous: $4.20+7.9%
Total AUM, Administration & Advisement

$1.1T

Previous: $973B+13.1%
AWM AUM

$732B

Previous: $643B+13.8%
Net Income

$177M

Previous: $463M-61.8%
Operating Income

$673M

Previous: $534M+26.0%
Gross Profit

$1.18B

Previous: $1.36B-13.6%
Cash & Equivalents

$8.9B

Previous: $6.21B+43.3%
Total Assets

$166B

Previous: $152B+9.3%
Stock-Based Comp

$39M

Previous: $35M+11.4%

Revenue & EPS history

Ameriprise · Revenue · Quarterly

$3.18B

Q4 2020-3.2%vs Q4 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Ameriprise · $3.37B total across 3 segments · Q4 2020

  • Advice & Wealth Management
    $1.78B+3.9%
  • Retirement & Protection Solutions
    $799M+29.3%
  • Asset Management
    $798M+3.6%

Forward guidance

Ameriprise did not provide specific forward guidance in its Q4 2020 earnings report. However, the company's management expressed optimism about building on their momentum in 2021, despite recognizing the challenges posed by the pandemic.

Tailwinds

  • Ameriprise will continue to help clients stay on track to achieve their financial goals.
  • Company returned $1.8 billion to shareholders in 2020.
  • Advisor network grew to 9,922 with 82 new experienced advisors.
  • Investment performance at Columbia Threadneedle Investments remains excellent.
  • Company generated strong flows of $14.9 billion into wrap accounts and Asset Management.

Headwinds

  • The company recognizes the enormous challenges the pandemic has created for individuals, businesses and the economy.
  • GAAP results were negatively impacted by market changes that affected credit spreads and the valuation of derivatives.
  • The reduction in short term interest rates impacted adjusted operating earnings by $303 million in 2020.
  • Distribution fees decreased 10% YOY.
  • Net investment income decreased 7% YOY.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.5%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+3.4%

Avg return

30 days after

53%

39 / 73 earnings

Positive

+9.9%

Q1 2020

Best reaction

-8.0%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%+3.4%-1.5%
Q4 2025+4.3%+1.5%-3.3%
Q3 2025-0.3%+1.1%+0.4%
Q2 2025-2.1%-1.6%-3.2%
Q1 2025+0.5%-0.0%+6.9%
Q4 2024-4.2%-6.1%-6.0%
Q3 2024-3.0%-1.2%+10.1%
Q2 2024+4.8%+2.5%+4.3%
Q1 2024-2.2%-1.7%+5.0%
Q4 2023+0.9%+1.4%+5.0%
Q3 2023+0.9%+0.7%+12.1%
Q2 2023-1.7%-1.8%-5.8%
Q1 2023-7.7%-2.9%-6.7%
Q4 2022+1.9%+0.7%-0.4%
Q3 2022+7.7%+14.9%+22.4%
Q2 2022+4.3%+9.7%+15.3%
Q1 2022-5.5%-5.2%-5.3%
Q4 2021+1.7%+1.9%+1.4%
Q3 2021-0.6%+1.4%+1.5%
Q2 2021+0.3%+3.5%+9.6%
Q1 2021+3.0%+3.7%+2.6%
Q4 2020-2.2%-4.9%+4.7%
Q3 2020-0.8%+1.3%+17.5%
Q2 2020-1.3%+1.1%+3.1%
Q1 2020+9.9%+11.9%+40.5%
Q4 2019+3.3%+1.4%-14.4%
Q3 2019+5.0%+7.3%+12.2%
Q2 2019-1.4%+0.4%-16.5%
Q1 2019+0.1%+2.0%+1.1%
Q4 2018+4.3%+4.7%+8.9%
Q3 2018-7.9%-8.4%-7.2%
Q2 2018+1.6%+4.0%-2.8%
Q1 2018-0.7%-1.4%-1.1%
Q4 2017-2.9%-0.5%-10.1%
Q3 2017+1.9%+4.2%+3.5%
Q2 2017+5.2%+5.0%+0.6%
Q1 2017+1.9%-0.5%-5.2%
Q4 2016+5.0%+9.9%+18.5%
Q3 2016-8.0%-8.9%+16.0%
Q2 2016-0.8%-0.5%+1.2%
Q1 2016-2.1%
Q4 2015-5.9%
Q3 2015+1.6%
Q2 2015-1.1%
Q1 2015-2.4%
Q4 2014-0.6%
Q3 2014+4.4%
Q2 2014+1.6%
Q1 2014+5.8%
Q4 2013+1.9%
Q3 2013+1.9%
Q2 2013+1.1%
Q1 2013+2.0%
Q4 2012-1.6%
Q3 2012+3.3%
Q2 2012+4.7%
Q1 2012-1.9%
Q4 2011-0.5%
Q3 2011+4.5%
Q2 2011-0.4%
Q1 2011+1.8%
Q4 2007-1.2%
Q4 2010-1.2%
Q3 2010+1.3%
Q2 2010+1.4%
Q1 2009-4.2%
Q1 2010+2.0%
Q4 2009+1.0%
Q3 2008+5.1%
Q3 2009+5.1%
Q2 2008-1.1%
Q2 2009-1.1%
Q4 2008-1.1%

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