Oppenheimer Q3 revenue falls 10% on weaker investment banking, trading

Overview

• US investment bank's Q3 revenue fell 10% yr/yr on lower investment banking and trading activity

• Q3 net income and EPS declined sharply from prior year

• Quarterly results impacted by a pre-tax expense linked to stock price increase

Outlook

• Company says interest rate uncertainty and inflation concerns may impact investor activity

• Company notes IPO activity may remain subdued amid market and political uncertainty

• Company sees corporate clients remaining cautious on strategic transactions and capital raising

Result Drivers

• LOWER INVESTMENT BANKING AND TRADING - Co said Q3 revenue decline was mainly due to reduced investment banking and trading revenues

• HIGHER STOCK-BASED COMPENSATION - Co said pre-tax expense associated with long-term employee incentive compensation linked to share price impacted Q3 results

• HIGHER ADVISORY FEES - Co said increased advisory fees partially offset revenue declines, driven by record-high AUM

Company press release:

Key Details

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)