This company is expected to post quarterly earnings of $2.26 per share in its upcoming report, which represents a year-over-year change of +100%. Revenues are expected to be $337.2 million, up 15.8% from the year-ago quarter. Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements. For Piper Sandler Companies, the consensus EP ...

Core Viewpoint - Piper Sandler is positioned for growth due to its diversified client base, strong liquidity, and effective operating discipline, which are expected to enhance financial performance in the near term [10]. Earnings Growth - The Zacks Consensus Estimate indicates a 27.4% growth in earnings year-over-year for 2024 [1]. - Piper Sandler has experienced earnings growth of 9.20% over the past three to five years, outperforming the industry average of 4.74% [4]. Revenue Strength - Piper Sandler's net revenues have shown a compound annual growth rate (CAGR) of 12.7% from 2019 to 2023, with continued growth in Q1 2024 [12]. - The Zacks Consensus Estimate for revenues indicates an 11.9% growth in 2024 [13]. Market Performance - Over the past year, Piper Sandler's shares have surged by 51.8%, outperforming the industry's rally of 30.4% [3]. - The Zacks Consensus Estimate for 2024 earnings has increased by 5.8% over the past 60 days, with Piper Sandler currently holding a Zacks Rank 1 (Strong Buy) [17]. Financial Position - As of March 31, 2024, Piper Sandler's total cash and cash equivalents were $70 million, with other liabilities and accrued expenses at $83.6 million, indicating a solid liquidity position [6]. - The company has an active share repurchase program with $138.2 million worth of shares remaining available for repurchase as of March 31, 2024 [7]. Return on Equity - Piper Sandler's trailing 12-month return on equity (ROE) is 13.65%, significantly higher than the industry average of 10.32% [8]. Capital Distributions - Piper Sandler has a strong capital distribution history, having increased dividends nine times in the last five years, with a five-year annualized dividend growth rate of 17.84% [18]. - The company maintains a 25% dividend payout ratio, allowing for both shareholder returns and reinvestment [18]. Earnings Surprise History - Piper Sandler has consistently surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings beat of 29.01% [19].

Financial Performance - Net revenues for the three months ended March 31, 2024, were $343,056,000, representing a 15.2% increase from $297,905,000 in the same period of 2023[162]. - Net income attributable to Piper Sandler Companies for Q1 2024 was $42,493,000, a 65.8% increase compared to $25,634,000 in Q1 2023[162]. - Earnings per diluted common share increased to $2.43 in Q1 2024, up 63.1% from $1.49 in Q1 2023[162]. - Adjusted net revenues for Q1 2024 were $333,905,000, reflecting a 15.4% increase from $289,226,000 in Q1 2023[162]. - For the three months ended March 31, 2024, total revenues were $344.4 million, an increase of 18.6% compared to $290.2 million in the prior-year period[196]. - Pre-tax margin for the three months ended March 31, 2024, increased to 15.3%, compared to 8.7% for the corresponding period of 2023[205]. - Adjusted pre-tax margin rose to 16.8%, up from 14.1% in the prior-year period, primarily due to higher net revenues[205]. Revenue Breakdown - Investment banking revenues reached $230.5 million, up 25.0% compared to $184.4 million in the prior-year period, driven by increases in corporate financing and advisory services[177]. - Advisory services revenues increased by 11.7% to $157.2 million, driven by a higher average fee despite a decline in completed transactions[198]. - Corporate financing revenues surged 96.2% to $52.6 million, compared to $26.8 million in the prior-year period, attributed to a higher average fee and more completed corporate financings[198]. - Municipal financing revenues were $20.8 million, up 22.5% from $16.9 million in the prior-year period, due to increased investor demand[198]. - Institutional brokerage revenues decreased by 5.1% to $91.4 million, down from $96.3 million in the prior-year period[201]. Expenses and Costs - Non-interest expenses totaled $290.6 million, a 6.8% increase from $272.1 million in the prior-year period, mainly due to higher compensation expenses[177]. - Compensation and benefits expenses increased by 11.6% to $222.4 million, representing 64.8% of net revenues in Q1 2024, down from 66.9% in Q1 2023[179]. - Communication expenses decreased by 7.6% to $13.2 million, primarily due to lower market data services expenses[182]. - Marketing and business development expenses rose by 7.1% to $10.8 million, attributed to higher travel expenses[183]. - Intangible asset amortization decreased to $2.4 million from $4.9 million in the prior-year period, due to lower amortization expenses related to a 2022 acquisition[186]. Tax and Regulatory Environment - The effective tax rate for Q1 2024 was 5.4%, compared to (29.6)% in Q1 2023[162]. - The effective tax rate for Q1 2024 was 29.7%, compared to a benefit of 35.9% in Q1 2023[189][190]. - Legal and regulatory risks include non-compliance with extensive regulations, which could adversely affect the company's reputation and operations[270]. - The company faces complex income tax laws that may lead to different interpretations, impacting the provision for income taxes[271]. Market Conditions and Outlook - The outlook for mergers and acquisitions (M&A) activity has improved, with expectations for advisory services revenues to be consistent with Q1 2024 before improving in the second half of the year[170]. - Equity financing activity improved significantly in Q1 2024, driven by increased demand from companies needing to raise capital[171]. - Client activity within fixed income services is slowly improving, although it remains muted as market participants await more certainty on interest rates[173]. - Overall market conditions for the municipal financing business remain challenging, with a need for sustained municipal fund inflows and lower interest rates to increase issuance volume[174]. - Geopolitical concerns and the upcoming 2024 U.S. presidential election may influence market volatility and direction in the second half of the year[169]. Capital and Funding - The company declared dividends totaling $3.00 per share for 2023, with a special cash dividend of $1.25 declared on February 3, 2023[212]. - The average funding for the first quarter of 2024 increased to $133.4 million, up from $111.5 million in the fourth quarter of 2023, primarily due to funding non-standard settlements[228]. - Maximum daily funding reached $544.2 million in the first quarter of 2024, a significant increase from $146.6 million in the same quarter of 2023[229]. - As of March 31, 2024, the company had $188.8 million in net capital, exceeding the minimum requirement by $187.8 million[230]. - The company has a $100 million unsecured revolving credit facility with U.S. Bank, with no advances against it as of March 31, 2024[224]. Risk Management - The company has a formal risk management process to identify, assess, and monitor strategic, market, liquidity, credit, operational, human capital, and legal risks[241]. - The audit committee oversees management's processes for identifying and evaluating major risks, ensuring effective governance and risk management practices[242]. - Cybersecurity risk management procedures are in place to protect confidential information and mitigate potential breaches[266]. - Human capital risks are present if the company fails to attract and retain qualified individuals, impacting overall performance[269]. - Operational risk is managed through policies including segregation of duties, management oversight, and independent risk management activities across various functions[267]. Asset Management - Total assets decreased from $2,140.98 million on December 31, 2023, to $1,822.45 million on March 31, 2024, reflecting a significant reduction in the asset base[216]. - Adjusted assets also declined from $1,436.23 million to $1,105.29 million during the same period, indicating a decrease in operational liquidity[216]. - The leverage ratio improved from 1.6 to 1.4, while the adjusted leverage ratio decreased from 2.2 to 1.6, suggesting a better balance sheet composition[216][217]. - The notional contract value of customer matched-book derivative contracts as of March 31, 2024, is $1,132,118,000, with a total contractual amount of $1,363,904,000[236]. - The net fair value of derivative contracts approximated $6.0 million as of March 31, 2024, compared to $6.9 million as of December 31, 2023[237].

MINNEAPOLIS, April 30, 2024 /PRNewswire/ -- Integrity Orthopaedics, Inc., a company pioneering next generation solutions for soft tissue repair, has successfully closed on a Series B financing of $20.6 million. The financing was co-led by Piper Sandler Merchant Banking and an undisclosed existing investor. The company intends to use the capital to expand the US commercial launch of its initial product in the rotator cuff repair market. This milestone advances the company's vision of revolutionizing soft tis ...

Financial Data and Key Metrics Changes - The company generated adjusted net revenues of $334 million for Q1 2024, representing a 15% increase compared to the same quarter last year [22] - The operating margin was reported at 16.8%, with adjusted EPS of $2.79 [5][25] - Net income for the first quarter was $50 million, with a diluted EPS of $2.79 [26] Business Line Data and Key Metrics Changes - Corporate investment banking revenues reached $210 million, a 25% increase year-over-year, driven by higher revenues from advisory and corporate financing [6] - Advisory services revenues were $157 million, with a notable increase attributed to higher average fees and a record performance from the energy and power team [7][8] - Corporate financing revenues were $53 million, nearly double the prior year, supported by increased demand and higher average fees [10] - Public finance revenues increased by 23% year-over-year to $21 million, driven by specialty sector transactions [15] - Equity brokerage revenues decreased by 8% to $49 million due to muted market volatility [17] - Fixed income revenues remained consistent at $42 million compared to the previous year [19] Market Data and Key Metrics Changes - The economic fee pool for equity underwriting was approximately $2 billion, nearly double the average of the last eight quarters [9] - The sub $5 billion market cap fee pool also saw significant increases, particularly in the healthcare sector [10] Company Strategy and Development Direction - The company aims to grow corporate investment banking revenues by enhancing corporate development, scaling industry teams, and increasing market share in technology [13] - The recruiting pipeline is robust, with plans to add five to seven managing directors annually, focusing on strengthening sector coverage and expanding product offerings [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the improvement in certain businesses, particularly equity capital markets, despite ongoing market headwinds [5] - The outlook for M&A is improving as CEO confidence strengthens, with expectations for advisory revenues to remain consistent in Q2 before improving in the latter half of 2024 [8] - The company remains cautious about the depository environment, which is expected to stay challenging [48] Other Important Information - The company returned an aggregate of $88 million to shareholders through buybacks and dividends in Q1 2024 [27] - The compensation ratio for Q1 2024 was 63.1%, lower than the previous year, with expectations to maintain this level throughout the year [23][24] Q&A Session Summary Question: Advisory outlook and private equity client activity - Management noted that private equity contributions to M&A have improved compared to the previous year, but the recovery is expected to be slow [37][38] Question: Recruiting landscape and M&A opportunities - The company is optimistic about recruiting in 2024, with a solid pipeline for adding managing directors [40][41] Question: Compensation ratio and recovery scenarios - Management indicated that a normalized compensation ratio is expected to be around 61.5% to 62% in a good environment, but caution is being exercised this year [42][44] Question: Update on bank clients and regulatory impacts - The depository environment remains difficult, with some opportunities for smaller deals but challenges for larger transactions [48] Question: ECM and biotech market sustainability - Management believes the ECM market is showing signs of improvement, with a good backlog, but visibility remains limited [50][51] Question: Advisory business performance and outlook - The energy advisory business is performing well, with a balanced contribution from healthcare and financials, but overall advisory levels remain relatively depressed [56][58] Question: Non-compensation costs outlook - The company reiterated guidance for non-compensation costs at $62 million per quarter, maintaining discipline in expense management [60]

Piper Sandler Companies (PIPR) came out with quarterly earnings of $2.79 per share, beating the Zacks Consensus Estimate of $1.89 per share. This compares to earnings of $2.35 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 47.62%. A quarter ago, it was expected that this company would post earnings of $2.53 per share when it actually produced earnings of $4.03, delivering a surprise of 59.29%.Over the last four quarters, the ...

[Executive Summary & Q1 2024 Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Q1%202024%20Highlights) Piper Sandler Companies reported a solid start to 2024 with net revenues exceeding $330 million, with adjusted revenues up 15% YoY, and returned $88 million to shareholders [Q1 2024 Financial Overview](index=1&type=section&id=Q1%202024%20Financial%20Overview) Piper Sandler reported Q1 2024 net revenues over $330 million, with adjusted revenues up 15% YoY, and returned $88 million to shareholders - Net revenues for Q1 2024 were over **$330 million**, representing a solid start to the year, with improvement noted in advisory and equity capital markets despite persistent market headwinds[2](index=2&type=chunk) - The company returned **$88 million** of capital to shareholders during the quarter through share repurchases and dividends[2](index=2&type=chunk) Q1 2024 Key Financial Metrics (U.S. GAAP & Adjusted) | Metric (Dollars in millions, except per share data) | Q1 2024 (U.S. GAAP) | vs. Q4-23 | vs. Q1-23 | Q1 2024 (Adjusted) | vs. Q4-23 | vs. Q1-23 | | :------------------------------------------------- | :------------------ | :-------- | :-------- | :----------------- | :-------- | :-------- | | Net revenues | $343 | -27 % | 15 % | $334 | -27 % | 15 % | | Pre-tax margin | 15.3 % | -2.9pp | 6.6pp | 16.8 % | -4.9pp | 2.7pp | | Net income attributable to Piper Sandler Companies | $42 | -18 % | 66 % | $50 | -31 % | 18 % | | Earnings per diluted common share | $2.43 | -19 % | 63 % | $2.79 | -31 % | 19 % | [Business & Talent Highlights](index=1&type=section&id=Business%20%26%20Talent%20Highlights) The company saw strong performance in corporate investment banking, particularly in advisory services led by the energy & power team, and corporate financing which had its best quarter since 2021 - Advisory services revenues were diversified across most sector and product groups, with a record quarter from the energy & power team[5](index=5&type=chunk) - Corporate financing activity was strong, generating **$53 million** in revenues, marking the best quarter since 2021[5](index=5&type=chunk) - Key senior hires included Brian White as co-head of technology investment banking, Paul Robinson as head of equity-linked capital markets, Rich Steiner as head of global market structure and algorithmic trading strategies, Biren Amin as senior research analyst for healthcare equity research, and Ryan Hallam as co-head of high-yield trading[5](index=5&type=chunk) [Capital Allocation Highlights](index=1&type=section&id=Capital%20Allocation%20Highlights) Piper Sandler declared a quarterly cash dividend of $0.60 per share and returned $88 million to shareholders through dividends and share repurchases - Declared a quarterly cash dividend of **$0.60 per share** of common stock on April 26, 2024, payable on June 7, 2024[5](index=5&type=chunk) - Returned an aggregate of **$88 million** to shareholders during the quarter through share repurchases and dividends[5](index=5&type=chunk) - Repurchased approximately **289,000 shares**, or **$52 million**, of common stock related to employee tax withholdings on the vesting of restricted stock awards[5](index=5&type=chunk) [U.S. GAAP Financial Results](index=2&type=section&id=U.S.%20GAAP%20Financial%20Results) This section details Piper Sandler's Q1 2024 U.S. GAAP financial performance, covering net revenues, expenses, and profitability metrics [Net Revenues](index=2&type=section&id=Net%20Revenues) For Q1 2024, U.S. GAAP net revenues were $343.1 million, a 27% decrease QoQ but a 15% increase YoY, primarily driven by a 25% YoY increase in investment banking revenues Net Revenues (U.S. GAAP) | Metric (Dollars in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Change vs. Q4-23 | Change vs. Q1-23 | | :---------------------------- | :------------ | :------------ | :------------ | :--------------- | :--------------- | | Net revenues | $343,056 | $471,851 | $297,905 | -27 % | 15 % | - Net revenues decreased **27%** compared to Q4 2023 and increased **15%** compared to Q1 2023[10](index=10&type=chunk) [Investment Banking Revenues](index=2&type=section&id=Investment%20Banking%20Revenues) Investment banking revenues reached $230.5 million in Q1 2024, up 25% YoY, driven by strong corporate financing and advisory services, despite a QoQ decline Investment Banking Revenues (U.S. GAAP) | Category (Dollars in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Change vs. Q4-23 | Change vs. Q1-23 | | :------------------------------ | :------------ | :------------ | :------------ | :--------------- | :--------------- | | Advisory services | $157,189 | $284,317 | $140,664 | -45 % | 12 % | | Corporate financing | $52,581 | $30,178 | $26,805 | 74 % | 96 % | | Municipal financing | $20,753 | $29,280 | $16,935 | -29 % | 23 % | | Total investment banking | $230,523 | $343,775 | $184,404 | -33 % | 25 % | - Advisory services revenues increased **12% YoY** driven by a higher average fee, despite fewer completed transactions[11](index=11&type=chunk) - Corporate financing revenues increased **96% YoY** and **74% QoQ**, driven by more completed deals and an improved equity financing market, particularly for biopharma companies[11](index=11&type=chunk) [Institutional Brokerage Revenues](index=4&type=section&id=Institutional%20Brokerage%20Revenues) Institutional brokerage revenues were $91.4 million in Q1 2024, decreasing 11% QoQ and 5% YoY, with equity brokerage declining and fixed income services remaining flat Institutional Brokerage Revenues (U.S. GAAP) | Category (Dollars in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Change vs. Q4-23 | Change vs. Q1-23 | | :------------------------------ | :------------ | :------------ | :------------ | :--------------- | :--------------- | | Equity brokerage | $49,488 | $55,003 | $53,831 | -10 % | -8 % | | Fixed income services | $41,954 | $47,892 | $42,482 | -12 % | -1 % | | Total institutional brokerage | $91,442 | $102,895 | $96,313 | -11 % | -5 % | - Equity brokerage revenues decreased **10% QoQ** due to lower research services and **8% YoY** due to lower volatility and volumes[17](index=17&type=chunk) - Fixed income services revenues decreased **12% QoQ** and were essentially flat YoY, as interest rate uncertainty continued to mute client activity[17](index=17&type=chunk) [Other Revenues (Interest Income, Investment Income)](index=4&type=section&id=Other%20Revenues) Interest income increased 14% QoQ but decreased 5% YoY to $8.3 million, while investment income was $14.2 million, a 30% decrease QoQ but a 27% increase YoY Other Revenues (U.S. GAAP) | Category (Dollars in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Change vs. Q4-23 | Change vs. Q1-23 | | :------------------------------ | :------------ | :------------ | :------------ | :--------------- | :--------------- | | Interest income | $8,306 | $7,302 | $8,712 | 14 % | -5 % | | Investment income | $14,168 | $20,235 | $11,115 | -30 % | 27 % | - Investment income primarily related to alternative asset management funds managed by the company[13](index=13&type=chunk) [Expenses](index=4&type=section&id=Expenses) Total non-interest expenses for Q1 2024 were $290.6 million, decreasing 25% QoQ but increasing 7% YoY, with compensation and non-compensation expenses showing similar trends Non-Interest Expenses (U.S. GAAP) | Category (Dollars in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Change vs. Q4-23 | Change vs. Q1-23 | | :------------------------------ | :------------ | :------------ | :------------ | :--------------- | :--------------- | | Compensation and benefits | $222,446 | $301,154 | $199,394 | -26 % | 12 % | | Non-compensation expenses | $68,188 | $84,851 | $72,702 | -20 % | -6 % | | Total non-interest expenses | $290,634 | $386,005 | $272,096 | -25 % | 7 % | - Non-compensation expenses decreased due to lower other operating expenses and acquisition-related intangible asset amortization, including a **$3.5 million** reduction in accrual for potential regulatory settlements[18](index=18&type=chunk) [Profitability & Earnings](index=4&type=section&id=Profitability%20%26%20Earnings) Pre-tax income for Q1 2024 was $52.4 million, a 39% decrease QoQ but a 103% increase YoY, with net income at $42.5 million, or $2.43 per diluted common share Profitability Metrics (U.S. GAAP) | Metric (Dollars in thousands, except per share data) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Change vs. Q4-23 | Change vs. Q1-23 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :--------------- | :--------------- | | Income before income tax expense/(benefit) | $52,422 | $85,846 | $25,809 | -39 % | 103 % | | Pre-tax margin | 15.3 % | 18.2 % | 8.7 % | -2.9pp | 6.6pp | | Net income attributable to Piper Sandler Companies | $42,493 | $52,025 | $25,634 | -18 % | 66 % | | Earnings per diluted common share | $2.43 | $3.00 | $1.49 | -19 % | 63 % | - The effective tax rate for Q1 2024 was **5.4%**, including **$10.6 million** of tax benefits related to restricted stock award vestings[16](index=16&type=chunk) - Q1 2024 net income and EPS decreased QoQ due to lower net revenues and pre-tax margin, but increased YoY due to higher net revenues and pre-tax margin[17](index=17&type=chunk) [Business Metrics](index=3&type=section&id=Business%20Metrics) Operational metrics showed a mixed performance in Q1 2024, with M&A transactions decreasing while corporate equity and debt transactions priced saw significant increases Key Business Metrics | Metric | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Change vs. Q4-23 | Change vs. Q1-23 | | :---------------------------------------- | :------------ | :------------ | :------------ | :--------------- | :--------------- | | Completed M&A and restructuring transactions | 62 | 48 | 55 | -23 % | -13 % | | Total equity transactions priced | 14 | 25 | 19 | 79 % | 32 % | | Total debt and preferred transactions priced | 5 | 10 | 4 | 100 % | 150 % | | Aggregate par value of municipal issues priced (in billions) | $3.2 | $4.0 | $2.8 | 25 % | 43 % | | Number of shares traded (in billions) | 2.6 | 2.6 | 2.8 | — % | -7 % | [Non-GAAP Adjusted Financial Results](index=5&type=section&id=Non-GAAP%20Adjusted%20Financial%20Results) This section presents Piper Sandler's Q1 2024 financial performance on an adjusted, non-GAAP basis, detailing revenues, expenses, and profitability [Adjusted Net Revenues](index=5&type=section&id=Adjusted%20Net%20Revenues) Adjusted net revenues for Q1 2024 were $333.9 million, a 27% decrease QoQ but a 15% increase YoY, primarily driven by corporate investment banking activity Adjusted Net Revenues | Metric (Dollars in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Change vs. Q4-23 | Change vs. Q1-23 | | :---------------------------- | :------------ | :------------ | :------------ | :--------------- | :--------------- | | Adjusted net revenues | $333,905 | $457,393 | $289,226 | -27 % | 15 % | - The YoY increase in adjusted net revenues was driven by corporate investment banking activity, notably corporate equity financing[22](index=22&type=chunk) [Adjusted Operating Expenses](index=5&type=section&id=Adjusted%20Operating%20Expenses) Adjusted operating expenses totaled $278.0 million in Q1 2024, decreasing 22% QoQ but increasing 12% YoY, with the compensation ratio slightly down Adjusted Operating Expenses | Metric (Dollars in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Change vs. Q4-23 | Change vs. Q1-23 | | :---------------------------- | :------------ | :------------ | :------------ | :--------------- | :--------------- | | Adjusted compensation and benefits | $210,698 | $290,144 | $183,144 | -27 % | 15 % | | Adjusted non-compensation expenses | $67,261 | $68,182 | $65,306 | -1 % | 3 % | | Adjusted total operating expenses | $277,959 | $358,326 | $248,450 | -22 % | 12 % | - Adjusted compensation ratio decreased to **63.1%** in Q1 2024, down from **63.4%** in Q4 2023 and **63.3%** in Q1 2023, driven by higher adjusted net revenues[27](index=27&type=chunk) - Adjusted non-compensation expenses were **$67.3 million**, in line with both the fourth and first quarters of 2023[27](index=27&type=chunk) [Adjusted Operating Income & Margin](index=5&type=section&id=Adjusted%20Operating%20Income%20%26%20Margin) Adjusted operating income was $55.9 million in Q1 2024, a 44% decrease QoQ but a 37% increase YoY, with the adjusted operating margin at 16.8% Adjusted Operating Income & Margin | Metric (Dollars in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Change vs. Q4-23 | Change vs. Q1-23 | | :---------------------------- | :------------ | :------------ | :------------ | :--------------- | :--------------- | | Adjusted operating income | $55,946 | $99,067 | $40,776 | -44 % | 37 % | | Adjusted operating margin | 16.8 % | 21.7 % | 14.1 % | -4.9pp | 2.7pp | - Adjusted operating margin decreased QoQ primarily due to lower adjusted net revenues, but increased YoY primarily due to higher adjusted net revenues[24](index=24&type=chunk) [Adjusted Effective Tax Rate](index=5&type=section&id=Adjusted%20Effective%20Tax%20Rate) The adjusted effective tax rate for Q1 2024 was 10.7%, lower than Q4 2023's 26.7%, primarily due to $10.6 million in tax benefits from restricted stock award vestings Adjusted Effective Tax Rate | Metric | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | | :------------------ | :------------ | :------------ | :------------ | | Adjusted effective tax rate | 10.7 % | 26.7 % | -8.0 % | - The Q1 2024 adjusted effective tax rate included **$10.6 million** of tax benefits related to restricted stock award vestings[25](index=25&type=chunk) [Adjusted Net Income & EPS](index=5&type=section&id=Adjusted%20Net%20Income%20%26%20EPS) Adjusted net income was $50.0 million, or $2.79 per diluted common share, in Q1 2024, including $10.6 million in income tax benefits from restricted stock award vestings Adjusted Net Income & EPS | Metric (Dollars in thousands, except per share data) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Change vs. Q4-23 | Change vs. Q1-23 | | :------------------------------------------------- | :------------ | :------------ | :------------ | :--------------- | :--------------- | | Adjusted net income | $49,984 | $72,374 | $42,296 | -31 % | 18 % | | Adjusted earnings per diluted common share | $2.79 | $4.03 | $2.35 | -31 % | 19 % | - Adjusted net income for Q1 2024 included **$10.6 million**, or **$0.59 per adjusted diluted common share**, of income tax benefits related to restricted stock award vestings[26](index=26&type=chunk) - Q1 2024 results decreased QoQ due to lower adjusted net revenues and operating margin, but increased YoY due to higher adjusted net revenues and operating margin, partially offset by a higher adjusted effective tax rate[26](index=26&type=chunk) [Capital Management & Shareholder Information](index=7&type=section&id=Capital%20Management%20%26%20Shareholder%20Information) This section outlines Piper Sandler's capital allocation strategies, including dividends, share repurchases, and key human capital and shareholder data [Dividends](index=7&type=section&id=Dividends) The Board of Directors declared a quarterly cash dividend of $0.60 per share and during Q1 2024, the company paid a quarterly cash dividend of $0.60 per share and a special cash dividend of $1.00 per share, totaling $35.7 million - A quarterly cash dividend of **$0.60 per share** was declared on April 26, 2024, to be paid on June 7, 2024[28](index=28&type=chunk) - During Q1 2024, the company paid a quarterly cash dividend of **$0.60 per share** and a special cash dividend of **$1.00 per share**, totaling **$35.7 million**[28](index=28&type=chunk) [Share Repurchases](index=7&type=section&id=Share%20Repurchases) In Q1 2024, Piper Sandler repurchased approximately 289,000 shares of common stock for $52.1 million, primarily to cover employee tax obligations on restricted stock awards - Approximately **289,000 shares** of common stock were repurchased for **$52.1 million** during Q1 2024, at an average price of **$180.26 per share**[29](index=29&type=chunk) - Share repurchases were primarily related to employee tax withholdings on the vesting of restricted stock awards[29](index=29&type=chunk) [Human Capital & Shareholder Data](index=7&type=section&id=Human%20Capital%20%26%20Shareholder%20Data) As of March 31, 2024, Piper Sandler had 1,706 full-time employees and 171 corporate investment banking managing directors, with common shareholders' equity at $1,100.6 million Human Capital & Shareholder Information | Metric | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | | :---------------------------------------- | :------------ | :------------ | :------------ | | Full-time employees | 1,706 | 1,725 | 1,779 | | Corporate investment banking managing directors | 171 | 169 | 171 | | Common shareholders' equity (in millions) | $1,100.6 | $1,085.5 | $1,036.8 | | Common shares outstanding (in millions) | 15.6 | 15.2 | 14.8 | | Restricted shares outstanding (in millions) | 2.2 | 2.6 | 3.0 | | Total shares outstanding (in millions) | 17.8 | 17.8 | 17.8 | [Company Information & Forward-Looking Statements](index=7&type=section&id=Company%20Information%20%26%20Forward-Looking%20Statements) This section provides details on Piper Sandler's Q1 2024 conference call, company overview, and cautionary notes regarding forward-looking statements [Management Conference Call](index=7&type=section&id=Management%20Conference%20Call) Piper Sandler's management team hosted a conference call on April 26, 2024, to discuss Q1 2024 financial results, with details provided for access - A conference call to discuss financial results was hosted on Friday, April 26, 2024, at 9 a.m. Eastern Time[31](index=31&type=chunk) - The call featured Chad Abraham (chairman and chief executive officer), Deb Schoneman (president), and Kate Clune (chief financial officer)[31](index=31&type=chunk) [About Piper Sandler](index=7&type=section&id=About%20Piper%20Sandler) Piper Sandler Companies is a leading investment bank offering securities brokerage, investment banking, alternative asset management, and fixed income advisory services globally - Piper Sandler Companies (NYSE: PIPR) is a leading investment bank[32](index=32&type=chunk) - Services include securities brokerage and investment banking in the U.S., U.K., and Hong Kong, as well as alternative asset management and fixed income advisory services[32](index=32&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=8&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) The report contains forward-looking statements subject to significant risks and uncertainties, including market conditions and revenue variations, which could cause actual results to differ materially - Forward-looking statements are subject to significant risks and uncertainties that are difficult to predict[34](index=34&type=chunk) - Key risks include variations in revenues from corporate advisory and financing transactions, market, geopolitical and economic conditions, interest rate volatility, and stock price fluctuations[36](index=36&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, and the company undertakes no obligation to update them[36](index=36&type=chunk) [Financial Statements & Reconciliations](index=9&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section provides detailed U.S. GAAP and non-GAAP financial statements, along with reconciliations and explanatory notes for adjusted measures [U.S. GAAP Results of Operations](index=9&type=section&id=U.S.%20GAAP%20Results%20of%20Operations) This section provides the detailed unaudited U.S. GAAP income statement for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, covering revenues, non-interest expenses, income before tax, net income, and earnings per share U.S. GAAP Results of Operations (Selected Data) | Metric (Amounts in thousands, except per share data) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | | :------------------------------------------------- | :------------ | :------------ | :------------ | | Net revenues | $343,056 | $471,851 | $297,905 | | Total non-interest expenses | $290,634 | $386,005 | $272,096 | | Income before income tax expense/(benefit) | $52,422 | $85,846 | $25,809 | | Net income attributable to Piper Sandler Companies | $42,493 | $52,025 | $25,634 | | Diluted EPS | $2.43 | $3.00 | $1.49 | [Non-GAAP Selected Summary Financial Information](index=10&type=section&id=Non-GAAP%20Selected%20Summary%20Financial%20Information) This section presents the preliminary selected summary financial information on an adjusted, non-GAAP basis for the three months ended March 31, 2024, December 31, 2023, and March 31, 2023, providing a comparative view of adjusted revenues, expenses, income, and earnings per share Non-GAAP Selected Summary Financial Information (Selected Data) | Metric (Amounts in thousands, except per share data) | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | | :------------------------------------------------- | :------------ | :------------ | :------------ | | Adjusted net revenues | $333,905 | $457,393 | $289,226 | | Adjusted total operating expenses | $277,959 | $358,326 | $248,450 | | Adjusted operating income | $55,946 | $99,067 | $40,776 | | Adjusted net income | $49,984 | $72,374 | $42,296 | | Adjusted earnings per diluted common share | $2.79 | $4.03 | $2.35 | [Reconciliation of U.S. GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20U.S.%20GAAP%20to%20Non-GAAP%20Measures) This section provides a detailed reconciliation of U.S. GAAP financial measures to their corresponding non-GAAP adjusted measures for key metrics, outlining specific adjustments made for each period - Detailed reconciliation tables are provided for net revenues, compensation and benefits, non-compensation expenses, income before income tax, income tax expense, net income attributable to Piper Sandler Companies, and earnings per diluted common share[39](index=39&type=chunk)[40](index=40&type=chunk) - Adjustments include items such as investment income related to noncontrolling interests, interest expense on long-term financing, compensation from acquisition-related agreements, restructuring and integration costs, amortization of intangible assets, and non-compensation expenses from potential regulatory settlements[39](index=39&type=chunk)[40](index=40&type=chunk) [Notes to Non-GAAP Financial Schedules](index=13&type=section&id=Notes%20to%20Non-GAAP%20Financial%20Schedules) This section provides explanations for the non-GAAP financial measures presented, detailing specific exclusions and adjustments made to U.S. GAAP measures to offer a more meaningful basis for comparing operating results - Non-GAAP measures are presented to provide a more meaningful basis for comparison of operating results across periods by excluding certain items not indicative of core operating results[43](index=43&type=chunk) - Specific adjustments include exclusions for investment income and non-compensation expenses related to noncontrolling interests, acquisition-related compensation and non-compensation expenses, restructuring and integration costs, amortization of acquisition-related intangible assets, and non-compensation expenses from potential regulatory settlements[43](index=43&type=chunk)

Have you been paying attention to shares of Piper Sandler Companies (PIPR) ? Shares have been on the move with the stock up 5.4% over the past month. The stock hit a new 52-week high of $200 in the previous session. Piper Sandler Companies has gained 13.5% since the start of the year compared to the 8.3% move for the Zacks Finance sector and the 9.9% return for the Zacks Financial - Investment Bank industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it ...

NEW YORK--(BUSINESS WIRE)--Piper Sandler Companies (NYSE: PIPR), a leading investment bank, is pleased to announce the addition of Biren Amin as a managing director and senior research analyst to the healthcare equity research team. Amin’s coverage will focus on biotechnology companies. “We are excited to welcome Biren to the equity research team. His well-respected and recognized biotechnology research experience, along with public and private company CFO experience, will expand and strengthen our industr ...

It seems to be a wise idea to add Piper Sandler Companies (PIPR) stock to your portfolio, given the strength in its fundamentals and solid prospects. Moreover, the company’s steady capital-deployment activities reflect a strong balance sheet position.Analysts also seem optimistic about the company’s performance. Over the past 60 days, the Zacks Consensus Estimate for earnings moved 9.1% upward for 2024. The company currently sports a Zacks Rank #1 (Strong Buy).Shares of Piper Sandler have jumped 35.2% in th ...