Oppenheimer Holdings Inc (OPY) Reports Q3 2023 Earnings with a 206.7% Increase in Net Income
Net income for Q3 2023 was $13.9 million, a significant increase of 206.7% compared to Q3 2022.
Revenue for Q3 2023 was $312.7 million, a 6.3% increase compared to Q3 2022.
Oppenheimer Holdings Inc (NYSE:OPY) completed a Dutch auction tender offer, repurchasing 437,183 shares of Class A non-voting common stock.
Book value and tangible book value per share reached new record highs as of September 30, 2023.
Oppenheimer Holdings Inc (NYSE:OPY) released its Q3 2023 earnings report on October 27, 2023. The company reported a net income of $13.9 million or $1.32 basic earnings per share, a substantial increase of approximately 206.7% compared to the net income of $4.5 million or $0.40 basic earnings per share for Q3 2022. The revenue for Q3 2023 was $312.7 million, a 6.3% increase compared to the revenue of $294.1 million for Q3 2022.
Company Performance and Financial Highlights
Albert G. Lowenthal, Chairman and CEO of Oppenheimer Holdings Inc (NYSE:OPY), commented on the company's performance, stating,
The profitable results for the quarter reflect improved performance across many of our businesses, owing to higher interest rates and increased market volumes emanating from a still resilient economy."
He also noted that the stronger economy has led to market expectations that the Federal Reserve will maintain "higher for longer" interest rates well into 2024.
During Q3 2023, the company completed its previously disclosed Dutch auction tender offer, repurchasing 437,183 shares of Class A non-voting common stock at a price of $40.00 per share. Additionally, the company purchased 168,904 shares (2%) of Class A non-voting common stock at an average price of $38.30 per share in the open market under its share repurchase program. As a result, the book value and tangible book value per share reached record levels as of September 30, 2023.
Financial Tables Summary
The company's revenue for Q3 2023 was primarily driven by a rise in interest-sensitive income, including margin interest and bank deposit sweep income, as well as higher fixed income sales and trading and equities underwriting revenues. Assets under administration and under management were both at higher levels at the end of September 2023 compared to the same period last year, benefiting from market appreciation and positive net asset flows.
Private Client reported revenue for the current quarter of $193.3 million, 8.2% higher when compared with the prior year period. Asset Management reported revenue for the current quarter of $20.8 million, 16.2% lower when compared with the prior year period. Capital Markets reported revenue for the current quarter of $94.6 million, 4.0% higher when compared with the prior year period.
Other Pertinent Details
The Board of Directors announced a quarterly dividend in the amount of $0.15 per share payable on November 24, 2023 to holders of Class A non-voting and Class B voting common stock of record on November 10, 2023. The effective tax rate for the current period was 36.2% compared with 35.5% for the prior year period and was impacted by permanent items and non-deductible losses in non-U.S. businesses.
Explore the complete 8-K earnings release (here) from Oppenheimer Holdings Inc for further details.
This article first appeared on GuruFocus.
