Stifel Financial Corp Earnings: Profit Goes South

Stifel Financial Corporation (NYSE:SF) reported its results for the fourth 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 Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the investment brokerage fell to $27 million (43 cents per share) vs. $41.4 million (86 cents per share) a year earlier. This is a decline of 34.7% from the year earlier quarter.

Revenue: Revenue was $356.9 million last quarter.

Actual vs. Wall St. Expectations: Stifel Financial Corporation fell in line with the mean analyst estimate of 43 cents per share. It beat the average revenue estimate of $347.6 million.

Quoting Management: “We are pleased to report that 2011 represented our 16th consecutive year of record net revenues. This is significant given continued headwinds and uncertainty in the marketplace, particularly in the second half of the year. We thank our clients for their support and our dedicated employees who strive to distinguish Stifel by providing superior service and execution,” commented Ronald J. Kruszewski, Chairman, President and CEO of Stifel Financial.

Key Stats:

The company fell in line with estimates last quarter after missing the mark in the previous two quarters. In the third quarter, it fell short by 6 cents, and in the second quarter, it missed by 5 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 56 cents a share to 53 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $1.88 a share to $1.80 over the last ninety days.

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

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