NYSE$OPY

Oppenheimer Holdings Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported decreased net income and earnings per share for the fourth quarter, reflecting fewer investment banking transactions and regulatory charges, but increased revenues for the full year 2023 due to record bank deposit sweep income and margin interest income and substantially higher fixed income sales and trading revenues.

Oppenheimer Holdings Inc. reported a decrease in net income for Q4 2023 compared to Q4 2022, primarily due to fewer investment banking transactions and regulatory charges. However, full-year revenues increased due to record bank deposit sweep income, margin interest income, and higher fixed income sales and trading revenues.

  • Net income for Q4 2023 was $11.1 million, or $1.07 per share, compared to $22.4 million, or $2.04 per share, in Q4 2022.
  • Adjusted net income for Q4 2023 was $16.1 million, or $1.56 per share, excluding $5.0 million of expense related to a regulatory settlement.
  • Revenue for Q4 2023 was $308.3 million, a 1.7% decrease from $313.6 million in Q4 2022.
  • Full-year revenue increased by 12.4% to $1.2 billion, driven by record bank deposit sweep income and margin interest income.

Headline financials

Total Revenue

$308M

Previous: $314M-1.7%
EPS (adj)

$1.42

Previous: $1.87-24.1%
Capital Expenditures

$4.59M

Previous: $4.68M-2.1%
Net Income

$11.1M

Previous: $22.4M-50.5%
Operating Income

$17.8M

Previous: $30.3M-41.1%
Gross Profit

$302M

Previous: $109M+176.1%
Stock-Based Comp

$7.28M

Previous: $17.1M-57.4%

Revenue & EPS history

Oppenheimer · Revenue · Quarterly

$308M

Q4 2023-1.7%vs Q4 2022

Revenue by segment

Oppenheimer · $94.6M total across 1 segment · Q3 2023

  • Capital Markets
    $94.6M+4.0%

Forward guidance

Company did not provide specific forward guidance. The CEO expressed optimism about the future due to strategic personnel additions and the commitment of existing staff.

Tailwinds

  • Economic outlook gradually improved as inflation receded.
  • Unemployment held steady.
  • FED signaled potential rate cuts in 2024.
  • Financial markets improved along with the economic outlook.
  • Diversified businesses registered a year-over-year increase in total revenues.

Headwinds

  • Mixed macroeconomic conditions
  • Significantly higher legal and regulatory costs.
  • Ongoing drought in Investment Banking activity.
  • Reduced corporate transactions
  • Moribund IPO environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2023

Historical avgQ4 2023

+0.7%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+5.3%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+20.3%

Q4 2020

Best reaction

-9.5%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.6%-15.8%-20.9%
Q4 2025+10.8%+19.1%+13.2%
Q3 2025+0.8%+0.8%-1.8%
Q1 2025+1.7%-0.2%+8.8%
Q4 2024-6.0%-7.6%-9.0%
Q3 2024+18.8%+18.3%+25.7%
Q2 2024-9.5%-11.3%-9.3%
Q1 2024+6.0%+4.1%+16.5%
Q4 2023-3.3%-6.3%-0.6%
Q3 2023+2.1%+5.6%+20.8%
Q2 2023-5.6%-5.1%-5.0%
Q1 2023-1.1%-1.9%-2.8%
Q4 2022-1.8%-2.5%-7.0%
Q3 2022+9.8%+13.6%+30.9%
Q2 2022-2.9%-2.0%-1.8%
Q1 2022-2.2%+1.3%+6.3%
Q4 2021+2.9%+3.0%+4.4%
Q3 2021+1.7%+4.7%-1.0%
Q2 2021+3.3%+2.5%+9.3%
Q1 2021+6.8%+5.9%+5.2%
Q4 2020+20.3%+17.4%+23.7%
Q3 2020-5.3%-2.8%+13.5%
Q2 2020+2.9%+8.5%+21.8%
Q1 2020-6.1%-11.4%+2.9%
Q4 2019+3.6%+7.2%-9.0%
Q3 2019-1.9%-0.1%+0.0%
Q2 2019+5.2%+3.2%-5.4%
Q1 2019+6.6%+5.7%+4.3%
Q4 2018+2.0%-2.2%+5.5%
Q3 2018+4.1%+8.2%-0.6%
Q2 2018+3.1%+9.6%+16.1%
Q1 2018+0.9%+1.7%+9.2%
Q4 2017+2.0%-2.0%-3.6%
Q3 2017+11.8%+17.2%+47.3%
Q2 2017-3.1%-2.5%+1.2%
Q1 2017-2.6%-6.3%-10.3%
Q4 2016-9.1%-12.8%-10.7%
Q3 2016-5.7%-6.4%+15.5%
Q2 2016+0.2%-0.6%+2.2%
Q1 2016-1.1%
Q4 2015+8.9%
Q3 2015-4.9%
Q2 2015-8.0%
Q1 2015+1.0%
Q4 2014+2.1%
Q3 2014+6.0%
Q2 2014-3.3%
Q1 2014-2.6%
Q4 2013-6.2%
Q3 2013+3.3%
Q2 2013-1.8%
Q1 2013+1.2%
Q4 2012+4.3%
Q2 2012+4.3%
Q3 2012+8.0%
Q4 2011+4.4%
Q1 2012-4.0%
Q1 2011-4.0%
Q2 2011-1.5%
Q4 2009-1.5%
Q3 2011+1.3%
Q3 2010+1.3%
Q4 2010-9.1%
Q2 2010-9.1%
Q1 2010+1.5%

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