Piper Sandler Companies held its Q1 2024 Earnings Conference Call on April 26, 2024, at 9:00 AM ET. The call featured key members of the company, including Chairman and CEO Chad Abraham, President Deb Schoneman, and CFO Kate Clune. Industry professionals had the opportunity to ask questions during the session.
During the call, Piper Sandler Companies shared its first-quarter financial results for 2024, highlighting an adjusted net revenue of $334 million, an operating margin of 16.8%, and an adjusted EPS of $2.79. Despite ongoing market challenges, the company saw positive developments in certain areas, particularly in equity capital markets, showcasing the strength of its diversified platform across different cycles.
Corporate investment banking saw a significant increase in revenues, reaching $210 million in the first quarter, driven by growth in advisory and corporate financing revenues. The company’s advisory services also performed well, with revenues of $157 million, driven by higher average fees and successful completion of 57 advisory transactions.
Restructuring and debt advisory groups kicked off the year with strong results following a record-breaking 2023. The outlook for M&A activities improved, indicating a positive trend as CEO confidence strengthens. Piper Sandler Companies expects consistent advisory revenues in the second quarter, with further improvements in the second half of the year.
The market for equity underwriting showed significant improvement in the first quarter, driven by increased demand from companies seeking to raise capital. Corporate financing revenues nearly doubled compared to the prior year quarter, totaling $53 million, due to higher fees and completed transactions. The company raised over $10 billion for corporate clients through 35 equity, debt, and preferred financings.
Piper Sandler Companies continues to focus on strengthening its market leadership, enhancing sector coverage, expanding product offerings, and attracting top talent to drive revenue growth as markets normalize. The firm remains committed to returning capital to shareholders through share repurchases, dividends, and strategic investments, highlighting its financial resilience and capacity to generate excess cash.
Overall, Piper Sandler Companies remains optimistic about its future outlook, demonstrating resilience in challenging market conditions and a strong position to drive earnings growth as markets continue to stabilize. The company’s strategic initiatives, financial performance, and commitment to delivering value to shareholders position it for continued success in the coming quarters.
