AMP is delivering its earnings tomorrow…
The post How did the AMP share price respond last earnings season? appeared first on The Motley Fool Australia. –
The AMP Ltd (ASX: AMP) share price has opened quite strongly today, up 1.13% at the time of writing to $1.077 a share. That’s a little better than what the S&P/ASX 200 Index (ASX: XJO) is doing today so far. The ASX 200 is currently up 0.42% to 7,594 points.
This move comes as AMP prepares to unveil its interim FY2021 earnings report tomorrow. And since the AMP share price is today just a touch off of its all-time low of $1.04 a share, many investors will be watching with bated breath.
So with AMP’s interim results imminent, it might be a good idea to look back and see what AMP delivered in its last earnings report that we saw back in February.
What did AMP deliver back in February?
Well, in its full-year results back in February (yes, AMP’s calendar is a little backwards), AMP didn’t exactly excite investors with what it had to show. As we reported at the time, the AMP share price dived roughly 9% after these numbers came out. Here’s a summary of what the company presented ~6 months ago:
Net cash outflows of $8.3 billion in FY20 (including $1.8 billion of early release superannuation payments)
a 6% drop in assets under management to $255 billion
Net profit after tax (NPAT) of $295 million, a 33% fall from the previous year’s $439 million
No FY20 final dividend declared
The two bright spots were arguably the company’s AMP Capital and AMP Bank divisions. AMP reported that AMP Capital delivered an NPAT of $139 million for FY20. That was down from the $204 million from the previous year, but still a strong metric considering the period included the coronavirus-induced 2020 share market crash.
The company also reported that AMP Bank’s total deposits increased by $1.7 billion over the period to $16.1 billion. The Banking division brought in $119 million of NPAT, only a $22 million drop from the previous year in the face of the market crash.
What happened next?
Of course, this last earnings report from AMP ended up being a little less than well-received. As we mentioned above, the AMP share price cratered upon the release of this February report, dropping 9%. And it continued to go from bad to worse.
As of today, AMP has never reclaimed the share price levels we saw before the release of this report. Indeed, AMP shares today are down more than 30% from where they were when investors got their hands on these earnings.
This probably hasn’t been helped by AMP’s ‘white knight’ CEO Francesco de Ferrari leaving the company a month or two after this report was released.
Needless to say, AMP’s shareholders will be hoping for a very different reaction tomorrow when the company gives us another look at its books. At the current AMP share price of $1.08, the company has a market capitalisation of $3.52 billion and a price-to-earnings (P/E) ratio of 71.
The post How did the AMP share price respond last earnings season? appeared first on The Motley Fool Australia.
Should you invest $1,000 in AMP right now?
Before you consider AMP, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AMP wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.