Earnings Preview for Ameriprise Financial

Ameriprise Financial AMP announces its next round of earnings this Monday, April 26. Here is Benzinga's everything-that-matters guide for this Monday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street expects EPS of $4.68 and sales around $3.24 billion. In the same quarter last year, Ameriprise Financial reported EPS of $5.41 on revenue of $3.00 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 13.49% decline in the company's EPS figure. Revenue would be have grown 7.96% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 117.32%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Ameriprise Financial is scheduled to hold the call at 09:00:00 ET and can be accessed here.