03:43 PM EDT, 07/16/2024 (MT Newswires) -- Ameriprise Financial ( AMP ) is expected to deliver Q2 earnings growth year over year amid a potentially strong advice and wealth management business and capital return story, RBC Capital Markets said in an emailed note to clients Tuesday.

RBC said it now expects Q2 operating earnings of $8.38 per share, versus the consensus estimate of $8.52 and its previous estimate of $8.28. That was up from $7.44 a year earlier.

Ameriprise's Q2 results are scheduled to be released on July 24.

Core advice and wealth management business is expected to sustain growth, supported by the company's efforts to increase client engagement and deepen client relationships. The company's "strong" capital position and free cash flow generation potential should also allow it to deliver robust capital return, RBC said.

RBC forecasts a roughly 30% advice and wealth management operating margin and $8.48 billion of total asset management net outflows, including reinvested dividends, for Q2. It also estimates repurchases of $2.2 billion and $2.4 billion in 2024 and 2025, respectively.

RBC also adjusted its 2024 and 2025 EPS estimates to $34.80 and $38.68, respectively, from $34.47 and $38.23.

The higher EPS estimates prompted RBC to raise its price target on the stock to $487 from $480 while reiterating its outperform rating.

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