Piper Sandler Q2 revenue beats on increased M&A activity advisory
PIPR•Quarterly results
Piper Sandler's Q2 revenue rose 25% year over year, beating analyst expectations. Adjusted EPS for Q2 rose 41% year over year.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $496 mln | $438.46 mln (4 Analysts) |
| Q2 EPS | $0.95 | ||
| Q2 Net Income | $68 mln |
Drivers behind the quarter
- Advisory services - Record Q2 advisory revenue was driven by increased M&A activity and strong private capital advisory performance.
- Municipal financing - Municipal financing revenues reached their highest level since 2021, led by special district and hospitality groups.
- Equity brokerage - Equity brokerage delivered one of its best quarters, benefiting from broad platform capabilities and market opportunities.
Outlook and analyst coverage
The company did not provide specific guidance for the current quarter or full year.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell". The average consensus recommendation for the investment banking & brokerage services peer group is "buy".
Wall Street's median 12-month price target for Piper Sandler Companies is $88.75, about 20.2% above its July 29 closing price of $73.82. The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago.
