As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the investment banking & brokerage industry, including BGC (NASDAQ: BGC) and its peers.
Investment banks and brokerages facilitate capital raises, mergers and acquisitions, and securities trading. The sector benefits from corporate activity during economic expansion, increased retail trading participation, and advisory opportunities in emerging sectors. Headwinds include economic cycle vulnerability affecting deal flow, compressed trading commissions due to electronic platforms, and regulatory capital requirements constraining certain higher-risk activities.
The 11 investment banking & brokerage stocks we track reported an exceptional Q1. As a group, revenues beat analysts’ consensus estimates by 7.6%.
Thankfully, share prices of the companies have been resilient as they are up 5.1% on average since the latest earnings results.
BGC (NASDAQ: BGC)
Tracing its roots back to 1945 and named after founder Bernard Gerald Cantor, BGC Group (NASDAQ: BGC) operates a global brokerage and financial technology platform that facilitates trading across fixed income, foreign exchange, equities, energy, and commodities markets.
BGC reported revenues of $639.6 million, up 14.5% year on year. This print exceeded analysts’ expectations by 1%. Overall, it was a satisfactory quarter for the company with EPS in line with analysts’ estimates.
Interestingly, the stock is up 6.7% since reporting and currently trades at $10.14.
Is now the time to buy BGC? Access our full analysis of the earnings results here, it’s free.
Best Q1: Perella Weinberg (NASDAQ: PWP)
Founded in 2006 by veteran investment bankers Joseph Perella and Peter Weinberg during a wave of boutique advisory firm launches, Perella Weinberg Partners (NASDAQ: PWP) is a global independent advisory firm that provides strategic and financial advice to corporations, financial sponsors, and government institutions.
Perella Weinberg reported revenues of $155.3 million, down 42.9% year on year, outperforming analysts’ expectations by 12.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 12.4% since reporting. It currently trades at $22.40.
Is now the time to buy Perella Weinberg? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Raymond James (NYSE: RJF)
Founded in 1962 and headquartered in St. Petersburg, Florida, Raymond James Financial (NYSE: RJF) is a diversified financial services company that provides wealth management, investment banking, asset management, and banking services to individuals and institutions.
Raymond James reported revenues of $3.40 billion, up 9.1% year on year, in line with analysts’ expectations. It was a mixed quarter because it struggled in other parts of the business.
Raymond James delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 22.2% since the results and currently trades at $165.27.
Read our full analysis of Raymond James’s results here.
Piper Sandler (NYSE: PIPR)
Tracing its roots back to 1895 and rebranded from Piper Jaffray in 2020, Piper Sandler (NYSE: PIPR) is an investment bank that provides advisory services, capital raising, institutional brokerage, and research for corporations, governments, and institutional investors.
Piper Sandler reported revenues of $396.8 million, up 17% year on year. This print topped analysts’ expectations by 13.3%. It was an incredible quarter as it also produced a beat of analysts’ EPS estimates and .
The stock is up 6.9% since reporting and currently trades at $336.46.
Read our full, actionable report on Piper Sandler here, it’s free.
LPL Financial (NASDAQ: LPLA)
As the nation's largest independent broker-dealer with no proprietary products of its own, LPL Financial (NASDAQ: LPLA) provides technology, compliance, and business support services to independent financial advisors and institutions who manage investments for retail clients.
LPL Financial reported revenues of $3.84 billion, up 30.8% year on year. This result surpassed analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also put up and a beat of analysts’ EPS estimates.
The stock is down 8.6% since reporting and currently trades at $362.44.
Read our full, actionable report on LPL Financial here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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