PIPR Earnings Prediction
The chart below shows how PIPR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PIPR sees a -3.12% change in stock price 10 days leading up to the earnings, and a +4.79% change 10 days following the report. On the earnings day itself, the stock moves by +1.34%. This data can give you a slight idea of what to expect for the next quarter's release.
PIPR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
480.08M
2.39%
34.94%
Gross Margin
--
--
--
Operating Margin
17.28%
-9.67%
9.02%
Net Margin
10.94%
-20.55%
-3.61%
EPS
3.86
28.67%
96.94%
No Data Available
PIPR Earnings Analysis
Piper Sandler Companies Corporation (PIPR.N) Earnings Conference Call
Positive
Q4 Revenue Surge: Piper Sandler achieved adjusted net revenues of $499 million in Q4 2024, marking a 42% increase from the sequential quarter and a 9% increase year-over-year, with a strong operating margin of 24.4%.
Strong Financial Performance 2024: For the full year 2024, Piper Sandler reported adjusted net revenues of $1.5 billion, a 16% increase compared to 2023, alongside a 19.7% operating margin and adjusted EPS of $12.69, reflecting robust financial performance across all business segments.
Advisory Services Revenue Surge: The firm generated $809 million in advisory services revenues for 2024, up 14% from the previous year, with Q4 advisory revenues reaching $280 million, a 49% sequential increase driven by more completed transactions and higher average fees.
Shareholder Returns Overview: Piper Sandler returned $140 million to shareholders in 2024 through dividends and share repurchases, including a special cash dividend of $3 per share, resulting in a total dividend payout of $5.50 per share for the fiscal year.
Corporate Financing Revenue Surge: Corporate financing revenues increased by 33% in 2024 to $174 million, with Q4 revenues of $53 million representing the best quarter since 2021, driven by favorable market conditions and increased equity financings.
Negative
Operating Expenses Increase: Operating expenses increased by 6% sequentially and 7% year-over-year, reaching $65,000,000 in Q4 2024, driven by higher recruiting and placement fees, indicating rising operational costs.
Non-Compensation Expense Increase: Non-compensation expenses for 2024 totaled $251,000,000, reflecting a 3% increase over 2023, suggesting challenges in controlling costs despite revenue growth.
Revised Income Tax Rate: The income tax rate for 2024 was revised to approximately 30%, up from previous expectations, due to increased non-deductible expenses, indicating a potential strain on net income.
Advisory Business Challenges: Despite a strong finish to 2024, the advisory business continues to face headwinds with deal elongation and buyer-seller valuation disparities, which may hinder future growth prospects.
Projected Expense Increase: The company anticipates increased non-compensation expenses in 2025, projected to range between $65,000,000 to $67,000,000 per quarter, driven by inflationary pressures and relocation costs, which could impact profitability.
PIPR FAQs
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PIPR Earning Call Sentiment
Earnings call transcript: Piper Sandler Q4 2024 beats estimates, stock rises
PIPR.N
-1.47%Positive
The earnings call reflects strong financial performance, with increased revenues and margins across all segments. Shareholder returns are robust, with a substantial dividend and share repurchase program. The Q&A suggests optimism in key sectors like healthcare and financial services, despite some uncertainties. The market cap indicates moderate sensitivity to these positive developments, leading to a predicted stock price increase of 2% to 8% over the next two weeks.
