Institutional Financial Markets (NYSEAMERICAN:COHN) Issues Quarterly Earnings Results, Misses Expectations By $0.32 EPS

Institutional Financial Markets (NYSEAMERICAN:COHN) issued its quarterly earnings data on Thursday. The financial services provider reported $0.10 EPS for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.32), FiscalAI reports. Institutional Financial Markets had a net margin of 5.65% and a return on equity of 47.14%. The firm had revenue of $32.44 million during the quarter, compared to analyst estimates of $40.80 million.

Here are the key takeaways from Institutional Financial Markets’ conference call:

• Adjusted pre-tax income fell sharply to $648,000 from $10.1 million in the prior quarter and $16.4 million a year earlier. Investment banking and new-issue revenue was $12.7 million, including $17.6 million in mark-to-market losses; reported net income of $6.7 million was helped by a $6.5 million deferred tax benefit.
• The firm underwrote six SPAC IPOs and one closed-end fund, raised $1.8 billion for clients, and advised on or raised capital for eight de-SPAC transactions. Management cited 45 SPACs with potential backend fees, 13 of which have signed business combination agreements, while noting that deals are closing more slowly and the new-issue market is subdued.
• Net trading revenue was $12.5 million, with $6.6 million generated by the gestation repo business, which had a $4.5 billion book at quarter-end.
• Founder Daniel Cohen has returned as CEO and outlined plans to expand investment banking, add ATM and private-credit capabilities, and revive trading. He said the company could reach more than $500 million in revenue over three to five years, an ambition rather than formal guidance; the board also declared a $0.25 quarterly dividend.

Institutional Financial Markets Price Performance

NYSEAMERICAN:COHN opened at $9.52 on Friday. Institutional Financial Markets has a 52 week low of $8.93 and a 52 week high of $32.60. The firm has a market cap of $30.75 million, a price-to-earnings ratio of 1.76 and a beta of 1.06. The firm’s 50-day simple moving average is $10.17 and its 200 day simple moving average is $13.58. The company has a debt-to-equity ratio of 0.26, a quick ratio of 0.86 and a current ratio of 0.86.

Institutional Financial Markets Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 14th. Investors of record on Monday, November 30th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a yield of 10.5%. The ex-dividend date of this dividend is Monday, November 30th. Institutional Financial Markets’s dividend payout ratio (DPR) is currently 24.45%.

About Institutional Financial Markets

Institutional Financial Markets, Inc. (NYSE American: COHN) is a financial services company focused primarily on institutional fixed-income markets. Through its broker-dealer operations, the company provides sales, trading and market-making services involving a range of debt securities, including corporate, mortgage-backed, asset-backed and municipal securities. The company also engages in investment banking and related capital-markets activities, serving institutional investors, issuers and other financial-market participants.