Stifel's Q3 revenue misses expectations, hurt by investment banking decline

Stifel Financial

Yesterday 12:12

Overview
US financial services firm's Q3 revenue was flat yr/yr, missing analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company repurchased $124 mln of its shares during the quarter

Outlook
Stifel says it is on track for another record year in 2026

Result Drivers
ASSET MANAGEMENT REVENUE - Co said asset management revenue rose 14% yr/yr, driven by higher asset values and net new asset growth
NET INTEREST INCOME - Co said net interest income increased 9% yr/yr, primarily due to balance sheet growth, partially offset by lower interest rates
INSTITUTIONAL GROUP DECLINES - Co said institutional group revenue fell, with equity and fixed income transactional revenues impacted by lower trading gains, decreased volumes, and market volatility

Company press release: ID:nGNX1f6mCJ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$1.43 bln
$1.49 bln (5 Analysts)
Q3 Adjusted EPS
Miss
$1.46
$1.50 (7 Analysts)
Q3 EPS
 
$1.40
 
Q3 Adjusted Net Income
 
$234.1 mln
 
Q3 Net Income
 
$224.82 mln
 
Q3 ROCE
 
17.4%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment banking & brokerage services peer group is "buy"
Wall Street's median 12-month price target for Stifel Financial Corp. is $84.00, about 25.7% above its October 20 closing price of $66.83
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%
Oct 19 - Zions Bancorp Q3 EPS rises 20% on improved credit quality
Oct 20 - MSCI Q3 adj EPS rises, beats estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)