Stifel Financial Earnings: Everything You Must Know Now

Stifel Financial Corp. (NYSE:SF) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Stifel Financial Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.45% to $0.58 in the quarter versus EPS of $0.55 in the year-earlier quarter.

Revenue: Rose 7.93% to $441.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stifel Financial Corp. reported adjusted EPS income of $0.58 per share. By that measure, the company beat the mean analyst estimate of $0.57. It missed the average revenue estimate of $450.31 million.

Quoting Management: “We are pleased with our performance for the quarter, which included record net revenues,” said Ronald J. Kruszewski, Chairman, President and CEO of Stifel. “While our profitability is clouded by merger-related charges, it is noteworthy that our Global Wealth Management segment posted record revenue and profitability, and our Institutional segment generated record quarterly revenue. As we work through the KBW integration process and the related expense reductions, we expect to continue to report both GAAP and non-GAAP results for the remainder of the year. Looking forward, we are focused on leveraging our new and established businesses to drive growth and profits across the platform. Additionally, we are on track this quarter to complete the acquisition of the U.S. institutional fixed income sales and trading team and hiring of the European team from Knight Capital Group.”

Key Stats (on next page)…

Revenue increased 3.6% from $426.43 million in the previous quarter. EPS decreased 4.92% from $0.61 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.58 to a profit $0.60. For the current year, the average estimate has moved up from a profit of $2.36 to a profit of $2.44 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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