Stifel Financial Corp. Earnings Cheat Sheet: Net Income Sinks

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

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Stifel Financial Earnings Cheat Sheet for the Second Quarter

Results: Net income for the investment brokerage fell to $3.4 million (5 cents per share) vs. $21.1 million (40 cents per share) a year earlier. This is a decline of 83.8% from the year earlier quarter.

Revenue: Revenue increased 9% to $358.9 million.

Actual vs. Wall St. Expectations: SF reported adjusted net income of 50 cents per share. By that measure, the company fell short of mean estimate of 55 cents per share. It fell short of the average revenue estimate of $379.7 million.

Quoting Management: “Second quarter results improved over the year-ago period, but were impacted by a challenging market environment dominated by macroeconomic factors, and significant non-core expenses primarily related to additional legal reserves in connection with previously disclosed matters. Despite these factors, our investment banking group generated their second best revenue quarter, which was offset by pressure in our brokerage and private client businesses due to a lack of investor conviction coupled with lower industry-wide volumes,” commented Ronald J. Kruszewski, Chairman, President and Chief Executive Officer of Stifel Financial. “We continue to position the firm for long-term growth and our recent announcement of the pending acquisition of Stone & Youngberg delivers on this strategy by adding public finance expertise and coverage in new markets. We are excited about combining our highly complementary businesses and delivering enhanced services to both our institutional and wealth management clients.”

Key Stats:

The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 9 cents with net income of 52 cents versus a mean estimate of net income of 61 cents per share.

Competitors to Watch: Oppenheimer Hldgs. Inc. (NYSE:OPY), Raymond James Financial, Inc. (NYSE:RJF), Siebert Financial Corp. (NASDAQ:SIEB), Ladenburg Thalmann Financial Services (AMEX:LTS), Rodman & Renshaw Capital Group Inc. (NASDAQ:RODM), Morgan Stanley (NYSE:MS), TD Ameritrade Holding Corp. (NASDAQ:AMTD), Citigroup (NYSE:C), Bank of America (NYSE:BAC), JP Morgan (NYSE:JPM), Goldman Sachs Group, Inc. (NYSE:GS), and Knight Capital Group Inc. (NYSE:KCG).

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(Source: Xignite Financials)