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Tickers in this Article: AMP
Ameriprise Financial (NYSE:AMP) announced its results for the most recent quarter on July 25, 2012. Ameriprise Financial provides financial planning, products, and services through its subsidiaries. The company offers solutions for its clients' cash and liquidity, asset accumulation, income protection, and estate and wealth transfer needs.

A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: 12 Things You Need To Know About Financial Statements

The Numbers: Ameriprise Financial missed estimates with $1.13 per share and revenues of $2.53 billion. Analysts were expecting $1.35 per share and revenues of $2.64 billion. Revenue fell 3.8% from the same period last year while EPS is down 15%. Last quarter marks the third in a row in which the company has seen falling revenue on a year-over-year basis. The company's net income for the quarter fell 23.7% to $254 million.

Management Quote: "Our business results were solid considering the difficult markets during the quarter," said Jim Cracchiolo, chairman and chief executive officer. "We experienced good advisor client and asset growth with strong net inflows in our fee-based products."

Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the third quarter has moved down from $1.50 a share to $1.42 over the last 90 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved down from $5.93 a share to $5.74 over the last 90 days.

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