Financial services firm Stifel Financial (NYSE:SF) will be reporting earnings this Wednesday morning. Here’s what investors should know.
Stifel beat analysts’ revenue expectations last quarter, reporting revenues of $1.45 billion, up 13.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ yield estimates and a beat of analysts’ EPS estimates.
Is Stifel a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Stifel’s revenue to grow 1.4% year on year, slowing from the 16.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Stifel has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Stifel’s peers in the investment banking & brokerage segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Goldman Sachs delivered year-on-year revenue growth of 23%, beating analysts’ expectations by 11.5%, and Jefferies reported revenues up 8.5%, topping estimates by 1.1%. Goldman Sachs traded down 1.7% following the results while Jefferies was also down 1.3%.
Read our full analysis of Goldman Sachs’s results here and Jefferies’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the investment banking & brokerage stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.9% on average over the last month. Stifel is down 12.8% during the same time and is heading into earnings with an average analyst price target of $84.50 (compared to the current share price of $66.06).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.