Cohen Company Inc NYSECOHN Reports Second Quarter 2024 Financial Results
Intellectia.AI2024-08-06
Cohen & Company Inc. (NYSE:COHN) Reports Second Quarter 2024 Financial Results
Philadelphia and New York, August 5, 2024 (GLOBE NEWSWIRE) -- Cohen & Company Inc., a financial services firm specializing in capital markets and asset management services, has announced its financial results for the second quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | YoY Change (%) | QoQ Change (%) |
|---|---|---|---|---|---|
| Total Revenue | $10.8 million | $18.6 million | $22.6 million | -52.2% | -41.9% |
| Earnings Per Share | -$1.47 | $1.28 | -$4.34 | 66.1% | -214.8% |
| Adjusted Pre-Tax Income | -$8.6 million | $7.7 million | -$1.6 million | -437.5% | -211.7% |
Analysis : The financial performance of Cohen & Company showed a significant decline in revenue and earnings per share (EPS) over both quarter-over-quarter (QoQ) and year-over-year (YoY) metrics. Total revenue decreased by 52.2% YoY and 41.9% QoQ. The company also reported a net loss of $1.47 per diluted share for Q2 2024, a stark contrast to the net income of $1.28 per diluted share in the previous quarter.
Segment Performance
| Segment | Q2 2024 Revenue | Q1 2024 Revenue | Q2 2023 Revenue | YoY Change (%) | QoQ Change (%) |
|---|---|---|---|---|---|
| Net Trading Revenue | $8.8 million | $9.9 million | $7.4 million | 18.9% | -11.1% |
| Asset Management Revenue | $2.1 million | $2.7 million | $1.6 million | 31.3% | -22.2% |
| New Issue & Advisory | $6.5 million | $24.4 million | $1.4 million | 364.3% | -73.4% |
| Principal Transactions | -$6.6 million | -$18.4 million | $12.2 million | -154.1% | 64.1% |
Analysis : The segment performance was mixed. While net trading revenue increased 18.9% YoY, it declined 11.1% QoQ. Asset management revenue saw a YoY increase of 31.3% but a QoQ decrease of 22.2%. New issue and advisory revenue saw substantial YoY growth of 364.3%, but a drastic QoQ decline of 73.4%. Principal transactions significantly improved QoQ, showing a positive shift.
Officer Comments
Chief Executive Officer Lester Brafman commented, "We were pleased with the performance of our full-service boutique investment banking operation, Cohen & Company Capital Markets ('CCM'), which generated $6.4 million of advisory revenue and acted as lead bookrunner on two SPAC IPOs. We remain confident about our future earnings potential and are focused on enhancing long-term, sustained value for our stockholders, including through continued payment of our quarterly dividend."
Dividends and Share Repurchase Program
The Company’s Board of Directors has declared a quarterly dividend of $0.25 per share, payable on September 5, 2024, to stockholders of record as of August 22, 2024. The Board will continue to evaluate the dividend policy quarterly.
Forward Guidance
The company did not provide specific forward guidance but expressed optimism about the pipeline of Cohen & Company Capital Markets (CCM) and future earnings potential.
Stock Price Movement
Following the earnings release, the stock saw a -2.95% change.
In summary, while Cohen & Company faced challenges including significant YoY and QoQ declines in revenue and EPS, segments like new issue and advisory displayed strong YoY growth. The company’s strategic decisions, including the continued payment of dividends and a focus on long-term value, indicate a commitment to overcoming current financial hurdles.
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