Q2 2024 Piper Sandler Companies Earnings Call Transcript
Key Points
- Piper Sandler Cos (PIPR) reported strong year-over-year growth with adjusted net revenues of $357 million, a 17.3% operating margin, and adjusted EPS of $2.52.
- Corporate investment banking revenues increased by 41% year-over-year, driven by M&A and restructuring activities.
- The company announced the pending acquisition of Aviditi Advisors, which will enhance their private capital advisory capabilities.
- Public finance business saw improved market conditions, generating $25 million in municipal financing revenues, up 22% sequentially.
- Equity brokerage business generated $52 million in revenues, up 3% from the same quarter last year, with a broad client base and strong internal cross-client activity.
- Corporate financing revenues were $51 million, down modestly from the first quarter, with a slowdown expected in the third quarter.
- Fixed income revenues were $40 million, down slightly from the first quarter, with client activity remaining muted due to uncertainty on interest rates.
- Non-compensation expenses were higher than expected due to elevated legal expenses and increased recruiting and placement fees.
- The equity capital markets saw a slowdown in July, impacting the overall performance of the ECM segment.
- Visibility into the fourth quarter remains uncertain, with potential impacts from market volatility and the upcoming election.
Good morning, and welcome to the Piper Sandler Company's Second Quarter 2024 Earnings Conference Call. Today's call is being recorded and will include remarks by Piper Sandler management, followed by a question-and-answer session.
I will begin by turning the call over to Kate Winslow. Please go ahead.
Thank you, operator. Good morning, and thank you for joining the Piper Sandler Company's Second Quarter 2024 Earnings Conference Call. Hosting the call today are Chairman and CEO, Chad Abraham; our President, Deb Schoneman; and CFO, Kate Clune.
Earlier this morning, we issued a press release announcing Piper Sandler's Second Quarter 2024 financial results, which is available on our website at pipersandler.com/earnings. Today's discussion of the results is complementary to the press release. A replay of this call will also be available at that same website later today.
Before we begin, let me remind you that remarks made on today's call may contain forward-looking statements
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