Ameriprise Financial (NYSE:AMP) announced its results for the most recent quarter on October 24, 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.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: 5 Tricks Companies Use During Earnings Season
The Numbers: Ameriprise Financial's EPS outpaced analyst estimates while the company's revenues came in below predictions. The company reported $1.32 per share versus the $1.29 per share estimate and revenues of $2.47 billion versus the $2.64 billion estimate. EPS rose 10.9% while revenue climbed 0.5% from the same period last year. The company's net income for the quarter was $174 million. This is a 46% decline from last year.
Management Quote: "We had another good quarter, led by solid results in our advisory and asset management businesses," said Jim Cracchiolo, chairman and chief executive officer. "While equity markets improved in the quarter, low interest rates continue to create headwinds."
Looking Ahead: Analysts appear increasingly optimistic about the company's results for the next quarter. The average estimate for the fourth quarter has moved up from $1.52 a share to $1.54 over the last 90 days. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. The average estimate for the fiscal year is $5.37 per share, down from $5.69 90 days ago.