Stifel Financial (NYSE:SF) Announces Earnings Results, Beats Estimates By $0.02 EPS

Stifel Financial (NYSE:SF) issued its quarterly earnings results on Wednesday. The financial services provider reported $1.46 earnings per share for the quarter, topping analysts’ consensus estimates of $1.44 by $0.02, FiscalAI reports. Stifel Financial had a net margin of 16.50% and a return on equity of 19.38%. The company had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.45 billion. During the same quarter in the prior year, the firm posted $1.95 EPS. The firm’s quarterly revenue was down .2% on a year-over-year basis.

Here are the key takeaways from Stifel Financial’s conference call:

• Record quarterly EPS of $1.46 rose 12% year over year, supported by stronger investment banking revenue, higher net interest income, disciplined expenses, and a 22.5% pretax margin.
• Global Wealth Management generated record revenue of $980 million, while client assets reached $576 billion and fee-based assets $240 billion; management remains on track toward its $1 trillion client-asset goal.
• Loan growth and fund-banking momentum drove net interest income to $302 million, with management forecasting fourth-quarter NII of $295 million-$305 million and expecting its Meow Technologies investment to accelerate venture-banking deposits and treasury capabilities.
• Institutional revenue fell 14% year over year as fixed-income and equity transactional revenue declined, partly due to trading marks from September’s sharp rate move, although management expects fourth-quarter transactional revenue of $145 million-$150 million and cited improving investment-banking activity.
• Stifel repurchased 1.6 million shares during the quarter and retains 6.2 million shares under its authorization, while maintaining approximately $360 million of excess capital to support loan growth, buybacks, and other investments.

Stifel Financial Price Performance

SF opened at $66.87 on Friday. Stifel Financial has a fifty-two week low of $65.40 and a fifty-two week high of $89.83. The firm has a 50-day moving average of $75.23 and a 200 day moving average of $75.88. The firm has a market cap of $10.10 billion, a P/E ratio of 11.97 and a beta of 1.01. The company has a debt-to-equity ratio of 0.33, a quick ratio of 0.83 and a current ratio of 0.88.

Stifel Financial Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were issued a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Tuesday, September 1st. Stifel Financial’s payout ratio is 24.33%.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on SF shares. Citigroup restated a “market outperform” rating on shares of Stifel Financial in a research note on Thursday. BMO Capital Markets lowered their price objective on Stifel Financial from $85.00 to $75.00 and set a “market perform” rating for the company in a research report on Tuesday, October 6th. UBS Group set a $83.00 price target on shares of Stifel Financial and gave the company a “buy” rating in a research report on Thursday. TD Cowen reduced their price objective on shares of Stifel Financial from $84.00 to $78.00 and set a “hold” rating for the company in a research report on Monday, October 12th. Finally, Capital One Financial set a $75.00 target price on Stifel Financial in a research report on Tuesday, October 6th. Five equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $85.71.

Stifel Financial Company Profile

Stifel Financial Corp. is a financial services holding company headquartered in St. Louis, Missouri. Through its principal operating subsidiaries, including Stifel, Nicolaus & Company, Incorporated, the company provides wealth management, investment banking, securities brokerage and related financial services to individual investors, corporations, municipalities and institutional clients.

Its wealth management business offers investment advice, brokerage services, financial planning, banking and lending solutions, and access to a range of investment products.