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Will Ameriprise (AMP) be Able to Beat Q2 Earnings Estimates?

Ameriprise Financial, Inc. AMP is scheduled to report second-quarter 2017 results after the market closes on Jul 25. Its earnings and revenues are expected to grow year over year.

Last quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were primarily driven by higher revenues. Also, assets under management (AUM) witnessed growth. However, a rise in expenses was the major downside.

That said, the company does not have a very impressive earnings surprise history, as it surpassed the Zacks Consensus Estimate in only two of the trailing four quarters.

Nevertheless, the company’s price performance has been quite encouraging. Ameriprise’s shares have gained 22.9% year to date, outperforming the industry’s rally of 19.1%.

Will the rally in stock price continue post Q2 earnings?

Let’s see how things have shaped up for this announcement.

Our proven model cannot conclusively predict if Ameriprise will be able to beat the Zacks Consensus Estimate this time around. This is because it does not have the right combination of two key ingredients — positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: Ameriprise has an Earnings ESP of +0.00%. This is because the Most Accurate estimate of $2.62 matches the Zacks Consensus Estimate.

Zacks Rank: Ameriprise currently carries a Zacks Rank #3, which increases the predictive power of ESP. However, we also need a positive Earnings ESP to be confident of an earnings beat.

Factors to Influence Q2 Results

Ameriprise’s persistent efforts in improving business are expected to have a positive impact on profitability during the quarter.

Moreover, management believes that the March rate hike will lead to an improvement in interest revenues.

Further, we expect Advice & Wealth Management segment’s (AWM) performance to drive the company’s results. The segment witnessed growth in assets in the previous quarter. Based on expectations of improved advisor productivity, the same is expected to continue in the to-be-reported quarter.

The company expects margin expansion in the AWM segment to continue over time, assuming no significant market disruptions.

Management expects Department of Labor related expenses in the to-be-reported quarter to decline on a sequential basis.

However, Ameriprise’s activities during the quarter were inadequate to win analysts’ confidence, resulting in the Zacks Consensus Estimate of $2.62 to remain stable over the last 30 days.

Stocks that Warrant a Look

Here are a few finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.

Banc of California, Inc. BANC is scheduled to release results on Jul 26. It has an Earnings ESP of +8.33% and a Zacks Rank #3.

Hilltop Holdings Inc. HTH has an Earnings ESP of +2.33% and a Zacks Rank #2 (Buy). The company is slated to release results on Jul 27.

Franklin Resources, Inc. BEN is slated to release results on Jul 28. It has an Earnings ESP of +1.37% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Banc of California, Inc. (BANC): Free Stock Analysis Report
 
AMERIPRISE FINANCIAL SERVICES, INC. (AMP): Free Stock Analysis Report
 
Franklin Resources, Inc. (BEN): Free Stock Analysis Report
 
Hilltop Holdings Inc. (HTH): Free Stock Analysis Report
 
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