Nomura (NYSE:NMR) Announces Earnings Results

Nomura (NYSE:NMR) posted its earnings results on Wednesday. The financial services provider reported $0.30 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.07, Zacks reports. Nomura had a net margin of 8.09% and a return on equity of 10.44%. The company had revenue of $4.19 billion for the quarter, compared to analyst estimates of $3.49 billion.

Here are the key takeaways from Nomura’s conference call:

• Strong first-quarter performance: All divisions increased revenue and pretax income sequentially, lifting ROE to 15.4%, the highest since 2020. Nomura said structural reforms have improved the stability and balance of its earnings base.
• Wealth Management continued its momentum, with revenue up 9% and pretax income up 16% for a fifth consecutive quarterly increase. Recurring revenue, recurring-asset net inflows, and recurring assets all reached records, supported by strong demand for investment trusts and discretionary products.
• Wholesale delivered record first-quarter results, with revenue up 20% and pretax income up 116%, driven particularly by a 41% increase in equities revenue. International businesses also reached record combined pretax income, with Asian equities, emerging-market FX, credit, and International Wealth Management contributing strongly.
• Investment Management posted its best results since its 2021 establishment, as revenue rose 14% and pretax income increased 148%. Record assets under management, higher asset-management fees, emerging-market fund inflows, and better performance at American Century Investments supported the improvement.
• Management cautioned that Wholesale revenue slowed somewhat in July after the exceptionally strong first quarter, with seasonal summer factors and market corrections weighing on activity. Compensation expenses may rise with performance, while EMEA remains loss-making and headquarters relocation costs will be incurred over this and the next fiscal year.

Nomura Trading Up 0.9%

NYSE NMR traded up $0.09 on Friday, reaching $9.64. The stock had a trading volume of 515,381 shares, compared to its average volume of 1,622,067. The company has a quick ratio of 1.08, a current ratio of 1.08 and a debt-to-equity ratio of 7.38. The stock has a fifty day moving average price of $9.00 and a two-hundred day moving average price of $8.64. Nomura has a 12-month low of $6.59 and a 12-month high of $10.06. The firm has a market capitalization of $28.30 billion, a price-to-earnings ratio of 11.22, a P/E/G ratio of 2.39 and a beta of 0.69.

Analyst Upgrades and Downgrades

Several research firms have recently commented on NMR. Bank of America raised shares of Nomura from a “neutral” rating to a “buy” rating and set a $10.20 price target on the stock in a research report on Thursday, June 25th. Zacks Research upgraded Nomura from a “hold” rating to a “strong-buy” rating in a research report on Wednesday. Nomura raised Nomura to a “buy” rating and set a $10.20 price target on the stock in a research note on Thursday, June 25th. Finally, Weiss Ratings raised Nomura from a “hold (c)” rating to a “hold (c+)” rating in a research report on Friday, July 17th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Buy” and an average price target of $10.20.

Institutional Investors Weigh In On Nomura

Several institutional investors and hedge funds have recently modified their holdings of the company. Osaic Holdings Inc. boosted its stake in shares of Nomura by 1,019.0% in the 2nd quarter. Osaic Holdings Inc. now owns 6,434 shares of the financial services provider’s stock valued at $42,000 after buying an additional 5,859 shares during the period. Sei Investments Co. acquired a new stake in Nomura in the second quarter valued at approximately $67,000. EP Wealth Advisors LLC purchased a new position in Nomura in the second quarter worth approximately $72,000. Flow Traders U.S. LLC acquired a new position in Nomura during the 2nd quarter worth approximately $75,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC purchased a new stake in shares of Nomura in the 4th quarter valued at approximately $76,000. Hedge funds and other institutional investors own 15.14% of the company’s stock.

About Nomura

Nomura Holdings, Inc is a global financial services group headquartered in Tokyo, Japan, with origins dating back to 1925 when Tokushichi Nomura II established the firm as a securities business. Over the decades Nomura has grown from a domestic securities house into a multinational financial services firm by expanding its product offerings and international footprint. The company is publicly listed and operates through a network of subsidiaries and branches to serve a broad client base.

Nomura’s principal businesses encompass retail brokerage, wholesale (investment banking and global markets), and asset management.