Minneapolis, MN – Piper Sandler Companies reported their second-quarter earnings on August 2, 2024, in an earnings conference call. Key company executives discussed the financial results, including Chairman and CEO Chad Abraham, President Deb Schoneman, and CFO Kate Clune.

The firm highlighted a strong performance for the quarter, with adjusted net revenues totaling $357 million, a 17.3% operating margin, and adjusted EPS of $2.52. Corporate investment banking saw significant growth, generating $235 million in revenues during the quarter, marking a 41% increase over the previous year.

Piper Sandler also announced the pending acquisition of Aviditi Advisors, a private capital advisory group. The acquisition aims to enhance the firm’s offerings to private equity clients by providing comprehensive capital market solutions. This strategic move is expected to drive additional revenues and strengthen relationships within the private equity sector.

During the second quarter, advisory services revenues reached $184 million, driven by increased fees and completed transactions. The firm completed 67 advisory transactions during the quarter, with strong performances from various industry teams. Looking ahead, Piper Sandler anticipates steady advisory revenues for the third quarter, with the potential for growth in the fourth quarter.

On the capital allocation front, the company approved an 8% increase in their quarterly cash dividend to $0.65 per share. This move reflects the firm’s strong earnings capacity and commitment to providing value to shareholders. Additionally, Piper Sandler returned $20 million to shareholders in the second quarter through dividends, showcasing their dedication to shareholder returns.

Moving forward, the firm continues to focus on managing expenses and enhancing operational efficiency. Despite inflationary pressures in certain areas, Piper Sandler maintains its guidance for non-compensation expenses in the near term. The company remains vigilant in identifying opportunities to improve cost management while driving sustainable growth.

In conclusion, Piper Sandler’s second-quarter earnings call highlighted the firm’s robust performance, strategic acquisitions, and commitment to shareholder value. With a diversified platform and a focus on client-centric solutions, the company is well-positioned for continued success in the evolving financial landscape.