Stifel's Q2 2024 earnings beat forecasts

Stifel's Q2 2024 earnings beat forecasts
Company reports substantial increase in revenue compared to last year.
JUL 25, 2024

Stifel Financial Corp. (Stifel) reported a robust financial performance for the second quarter of 2024, surpassing analyst expectations with an adjusted earnings per share (EPS) of $1.60. This figure exceeded the consensus estimate of $1.55 by $0.05.

The company’s net revenues reached $1.2 billion, exceeding the consensus estimate of $1.18 billion and reflecting a notable increase from $1.1 billion in the same quarter last year. Stifel noted this achievement represents the second highest quarterly net revenue in Stifel’s history, highlighting the company's strong market position and diversified business model.

“Stifel generated our second highest quarterly net revenue in company history, as each of our operating segments generated solid year-on-year gains,” said Ronald J. Kruszewski, chairman and chief executive officer of Stifel. He credited the impressive results to improved market conditions and Stifel’s strategic positioning, expressing confidence in the company's outlook for the second half of 2024.

Financial results

The firm reported net income available to common shareholders of $156.0 million, or $1.41 per diluted common share, up from $125.0 million, or $1.10 per diluted common share, in the second quarter of 2023. On a non-GAAP basis, net income available to common shareholders was $176.6 million for the second quarter of 2024.

Stifel’s asset management segment saw record revenues, increasing by 19% compared to the previous year. Advisory revenues also experienced substantial growth, surging by 50%. The Institutional Group reported significant progress, with net revenues of $390.7 million, a considerable rise from $277.5 million in the second quarter of 2023. The group’s pre-tax net income was $48.8 million, a stark contrast to the pre-tax net loss of $11.6 million recorded in the same period last year.

The company’s balance sheet remained robust, with record client assets totaling $474.1 billion, up 14% year-over-year. Stifel highlighted the financial strength of the firm was further enhanced by the addition of 42 financial advisors during the quarter, which included 13 experienced employee advisors and one experienced independent advisor.

Latest News

LPL building out alts, banking services to chase wirehouse advisors, new CEO says
LPL building out alts, banking services to chase wirehouse advisors, new CEO says

New chief executive Rich Steinmeier replaced Dan Arnold on October 1.

Franklin Templeton CEO vows to "do what's right" amid record outflows
Franklin Templeton CEO vows to "do what's right" amid record outflows

The global firm is navigating a crisis of confidence as an SEC and DOJ probe into its Western Asset Management business sparked a historic $37B exodus.

For asset managers, easy experience is key to winning advisors' businesses
For asset managers, easy experience is key to winning advisors' businesses

Beyond returns, asset managers have to elevate their relationship with digital applications and a multichannel strategy, says JD Power.

Why retaining HNW clients ultimately comes down to one basic thing
Why retaining HNW clients ultimately comes down to one basic thing

New survey finds varied levels of loyalty to advisors by generation.

Stocks drop as investors digest Microsoft, Meta earnings
Stocks drop as investors digest Microsoft, Meta earnings

Busy day for results, key data give markets concerns.

SPONSORED Out with the old and in with the new: a 50% private markets portfolio

A great man died recently, but this did not make headlines. In fact, it barely even made the news. Maybe it’s because many have already mourned the departure of his greatest legacy: the 60/40 portfolio.

SPONSORED Destiny Wealth Partners: RIA Team of the Year shares keys to success

Discover the award-winning strategies behind Destiny Wealth Partners' client-centric approach.