The following is a summary of the Piper Sandler Companies (PIPR) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Piper Sandler reported strong Q2 2024 results with adjusted net revenues of $357 million and an adjusted EPS of $2.52.

• The company achieved a 17.3% operating margin.

• Corporate investment banking was a significant contributor with $235 million in revenues, a 41% increase year-over-year.

• Firm-wide, net revenues for the first-half of 2024 were $691 million, up 22% compared to the previous year.

Business Progress:

• Announced acquisition of Aviditi Advisors, anticipated to strengthen Piper Sandler's presence in the private capital advisory sector.

• Successfully completed 67 advisory transactions during the quarter, with a notable performance from the financial services team.

• Expanded their technological and geographical capabilities, with the addition of three managing directors to their services and industrials teams.

Opportunities:

• The acquisition of Aviditi Advisors is expected to enhance Piper Sandler's private capital advisory group, possibly increasing revenue from the company's largest client base: private equity.

• Market normalization is predicted to accelerate earnings growth as the firm postulates a strong finish to the year based on improving advisory and corporate financing market conditions.

Risks:

• Acknowledged a modest downturn in current corporate financing activities, predicting that revenues for the third quarter will be below the first-half 2024 run rate.

• The gradual improvement in advisory market conditions suggests potential volatility in near-term performance, depending on how market conditions evolve.

More details: Piper Sandler IR

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