The 10-second takeaway
For the quarter ended March 31 (Q1), Ameriprise Financial missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share improved.
Gross margins dropped, operating margins contracted, and net margins were steady.
Ameriprise Financial logged revenue of $2.51 billion. The seven analysts polled by S&P Capital IQ foresaw sales of $2.64 billion on the same basis. GAAP reported sales were 1.1% higher than the prior-year quarter's $2.55 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.45. The 12 earnings estimates compiled by S&P Capital IQ averaged $1.40 per share on the same basis. GAAP EPS of $1.05 for Q1 were 13% higher than the prior-year quarter's $0.93 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.8%, 230 basis points worse than the prior-year quarter. Operating margin was 23.6%, 430 basis points worse than the prior-year quarter. Net margin was 9.5%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $2.71 billion. On the bottom line, the average EPS estimate is $1.45.
Next year's average estimate for revenue is $11.09 billion. The average EPS estimate is $5.96.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ameriprise Financial is outperform, with an average price target of $64.56.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.