Stifel Financial Corp shares fell 5% to $55.88 in early Wednesday trading after the independent investment bank and financial services company reported third-quarter 2023 adjusted earnings per share (EPS) of $0.60, falling far short of the FactSet consensus estimate of $1.29.
Stifel’s bottom-line results, however, were impacted by non-recurring legal costs of $0.58 a share related to the industry review by the US Securities and Exchange Commission (SEC) of off-channel communications.
The company’s revenue for the quarter of $1.05 billion also missed expectations of $1.07 billion on what Stifel described as "an environment that remains challenging."
"Although the near-term environment remains uncertain, we remain well positioned to generate stable returns and strong growth as the market improves," Stifel Financial CEO Ronald Kruszewski said in a statement.
Stifel also noted that its client assets increased 13% year over year during the period to $412.5 billion, although its investment banking revenues fell 34%.
Shares of Stifel have fallen 6% year to date.
Contact Sean at sean@proactiveinvestors.com