Shares of Ameriprise Financial (AMP) tumbled 5.18% in Thursday's pre-market trading, despite the company reporting better-than-expected third-quarter earnings. The sharp decline suggests investors may be focusing on concerns beyond the headline numbers.
Ameriprise reported third-quarter earnings per share (EPS) of $9.33. On an adjusted basis, the company posted EPS of $9.87, surpassing the analyst consensus estimate of $9.54. The asset and wealth manager saw its adjusted operating profit rise 17% to $965 million, while adjusted operating net revenue increased 9% to $4.7 billion.
A key highlight was the company's record $1.7 trillion in assets under management, administration, and advisement, representing an 8% increase. CEO Jim Cracchiolo noted, "Our strategic investments, disciplined expense management and strong financial foundation help us to effectively navigate and grow across market cycles."
Despite these positive results, the significant stock drop indicates that investors may be concerned about factors not immediately apparent in the earnings report. Possible reasons could include worries about future growth prospects, potential market headwinds, or simply that the strong results were already priced into the stock. The company's forward guidance and any comments made during the earnings call could provide more insight into the market's reaction.
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