Overview

• U.S. financial services firm's Q2 net revenue rose yr/yr, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Company repurchased $177 mln in common stock during the quarter

Outlook

• Company did not provide specific financial guidance for the current quarter or full year in its press release

Result Drivers

• INVESTMENT BANKING SURGE - Q2 investment banking revenues rose 42% yr/yr, with capital raising up 64% and advisory up 24%, driven by higher deal activity and larger transactions

• ASSET MANAGEMENT & CLIENT ACTIVITY - Asset management revenues rose 13% and commission revenues 10%, reflecting higher asset values from improved market conditions and increased client activity

• BALANCE SHEET GROWTH & NET INTEREST INCOME - Net interest income rose 8%, primarily due to balance sheet growth, partially offset by lower interest rates

Company press release: ID:nGNX13xZRD

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Net Revenue	Beat	$1.45 bln	$1.42 bln (4 Analysts)
Q2 Adjusted EPS	Beat	$1.42	$1.34 (6 Analysts)
Q2 EPS		$1.34
Q2 Adjusted Net Income		$229.30 mln
Q2 Net Income		$217.16 mln
Q2 ROCE		17.10%

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 $86.50, about 11.5% above its July 21 closing price of $77.61

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 21 - Charles Schwab posts record quarterly profit on trading boom

• July 21 - Capital One second-quarter profit rises on higher interest income

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

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