Stifel Financial Earnings: Tops Wall Street Expectations

Stifel Financial Corporation (NYSE:SF) reported net income above Wall Street’s expectations for the third 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 $37.7 million (60 cents per share) vs. $22.3 million (35 cents per share) in the same quarter a year earlier. This marks a rise of 69.1% from the year-earlier quarter.

Revenue: Rose 25.1% to $426 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Stifel Financial Corporation beat the mean analyst estimate of 47 cents per share. It beat the average revenue estimate of $381.1 million.

Quoting Management: “I am pleased with our third quarter results, which included record net revenues, as well as with our record net revenues and net income for the first nine months of 2012. Our results highlight the soundness of our balanced business model, particularly against a challenging economic backdrop. In the quarter, both the Global Wealth Management and Institutional Group segments performed well,” commented Ronald J. Kruszewski, Chairman, President and CEO of Stifel Financial. “We continue to invest in businesses that expand our client services, and which we believe will return shareholder value. Opportunities drive our growth. Today’s announcement of our merger with KBW furthers our goal of creating the premier middle-market investment bank with a specialized focus on the financial services industry.”

Key Stats:

Revenue has now gone up in each of the last three quarters. In the second quarter, revenue rose 5.2% to $384.3 million while the figure rose 9.8% in the first quarter from the year earlier.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 42 cents versus a mean estimate of net income of 52 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 60 cents a share to 53 cents over the last ninety days. At $1.97 per share, the average estimate for the fiscal year has fallen from $2.23 ninety days ago.

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

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