Stifel Financial Earnings: Revenue Up, Estimates Still Short

Stifel Financial Corporation (NYSE:SF) reported its results for the second quarter. Stifel Financial, through its wholly-owned subsidiaries, is primarily engaged in financial services such as retail brokerage, securities trading, investment banking, investment advisory, retail, and consumer and commercial banking.

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Stifel Financial Corporation Earnings Cheat Sheet

Results: Net income for Stifel Financial Corporation rose to $26.1 million (42 cents per share) vs. $3.4 million (5 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Rose 2.5% to $374.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stifel Financial Corporation fell short of the mean analyst estimate of 53 cents per share. Analysts were expecting revenue of $381.1 million.

Quoting Management: “The operating environment in the second quarter was challenging, especially compared with the strong start to the year. The headwinds in the equity and bond markets, as well as macro economic factors affected the industry, our business and client activity. In the quarter, asset management, investment banking advisory and Stifel Bank performed well, while commissions stabilized, and principal transactions and equity capital raising results were lower,” commented Ronald J. Kruszewski, Chairman, President and CEO of Stifel Financial. “Throughout this year, we have continued to grow through investments in selected professionals and certain businesses, namely our fixed income platform. We are well positioned with the scale and expertise to gain market share.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 55 cents versus a mean estimate of net income of 53 cents per share.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 9.8% to $409.3 million from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from 61 cents a share to 53 cents over the last ninety days. The average estimate for the fiscal year is $2.25 per share, down from $2.41 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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