Looking back on investment banking & brokerage stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Piper Sandler (NYSE: PIPR) and its peers.
Investment banks and brokerages facilitate capital raises, mergers and acquisitions, and securities trading. The sector benefits from corporate activity during economic expansion, increased retail trading participation, and advisory opportunities in emerging sectors. Headwinds include economic cycle vulnerability affecting deal flow, compressed trading commissions due to electronic platforms, and regulatory capital requirements constraining certain higher-risk activities.
The 16 investment banking & brokerage stocks we track reported a very strong Q4. As a group, revenues beat analysts’ consensus estimates by 5.9% while next quarter’s revenue guidance was in line.
While some investment banking & brokerage stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.5% since the latest earnings results.
Piper Sandler (NYSE: PIPR)
Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.
Piper Sandler reported revenues of $635 million, up 27.4% year on year. This print exceeded analysts’ expectations by 22.5%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Unsurprisingly, the stock is down 4.5% since reporting and currently trades at $316.71.
Perella Weinberg (NASDAQ: PWP)
Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners (NASDAQ: PWP) is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.
Perella Weinberg reported revenues of $219.2 million, down 2.9% year on year, outperforming analysts’ expectations by 27.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
Perella Weinberg scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 9.3% since reporting. It currently trades at $19.54.
Is now the time to buy Perella Weinberg? Access our full analysis of the earnings results here, it’s free.
BGC (NASDAQ: BGC)
Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ: BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.
BGC reported revenues of $723.3 million, up 32% year on year, falling short of analysts’ expectations by 3.7%. It was a slower quarter as it posted a miss of analysts’ revenue estimates.
BGC delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 10.5% since the results and currently trades at $9.63.
Read our full analysis of BGC’s results here.
Interactive Brokers (NASDAQ: IBKR)
Founded in 1977 and known for its sophisticated trading technology and global reach across 150+ exchanges in 34 countries, Interactive Brokers (NASDAQ: IBKR) is a global electronic broker that provides low-cost trading and investment services across stocks, options, futures, forex, bonds, and other financial instruments.
Interactive Brokers reported revenues of $1.67 billion, up 17.3% year on year. This number surpassed analysts’ expectations by 2.8%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
The stock is up 3.8% since reporting and currently trades at $74.22.
Read our full, actionable report on Interactive Brokers here, it’s free.
Stifel (NYSE: SF)
Tracing its roots back to 1890 when the firm was established in St. Louis, Stifel Financial (NYSE: SF) is a financial services firm that provides wealth management, investment banking, and institutional brokerage services to individuals, corporations, and institutions.
Stifel reported revenues of $1.56 billion, up 14.4% year on year. This print beat analysts’ expectations by 2.9%. Overall, it was a strong quarter as it also recorded a decent beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
The stock is up 39.8% since reporting and currently trades at $117.77.
Read our full, actionable report on Stifel here, it’s free.
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