Stifel’s stocks drops after big miss on Q3 earnings estimate partly due to non-recurring legal accruals

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Stifel’s stocks drops after big miss on Q3 earnings estimate partly due to non-recurring legal accruals
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Stifel Financial Corp.’s stock SFL, +0.55% dropped 5% in premarket trading on Wednesday after the investment bank and financial services company’s third-quarter earnings of 60 cents a share missed the FactSet consensus estimate of $1.29 a share. Stifel also had non-recurring legal costs of 58 cents a share related to the industry review by the U.S. Securities and Exchange Commission of off-channel communications.

Adding that cost back into its earnings would have brought the figure up to $1.18 a share. Revenue of $1.05 billion fell short of the analyst forecast of $1.07 billion. Stifel Chief Executive Ronald J. Kruszewski said the company’s results were solid despite challenging market conditions. “Although the near-term environment remains uncertain, we remain well positioned to generate stable returns and strong growth as the market improves,” he said.

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