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Dec 31, 2020
Oppenheimer Q4 2020 Earnings Report
Reported record revenue and earnings, driven by strong performance in Capital Markets and Asset Management segments.
Key Takeaways
Oppenheimer Holdings Inc. reported a significant increase in net income and revenue for the fourth quarter of 2020, driven by record performances in its Capital Markets and Asset Management segments. Net income for the quarter was $81.9 million, or $6.56 basic earnings per share, compared to $25.4 million, or $1.99 basic earnings per share, for the same period in 2019. Revenue for the fourth quarter of 2020 was $422.9 million, a 42.9% increase from $295.9 million in the fourth quarter of 2019.
Record gross revenue achieved for both the fourth quarter and the full year.
Record pre-tax income and net income attained for the fourth quarter and the full year.
Record basic and diluted earnings per share reported for the fourth quarter and the full year.
Shareholders' Equity reached a record of $685.6 million as of December 31, 2020.
Revenue by Segment
Forward Guidance
Company anticipates a return to some level of normalcy by the third quarter of 2021 as the rate of vaccination increases in the U.S. and around the world.
Positive Outlook
- Wealth Management business continued to produce solid operating returns based on increased commission activity and higher fee income from assets under management.
- Wealth Management business got a significant boost from the record performance of the hedge funds that we sponsor which led to an increase in incentive fees from alternative investments in the fourth quarter of 2020 which are measured and earned at the end of each year.
- Investment banking had its best quarter ever as the Firm increased its market share during a robust period for equities issuance in the U.S. capital markets.
- M&A activity also picked up significantly during the fourth quarter with several notable advisory and placement fees.
- The broader equities markets finished the year at record levels and were up 11.7% during the fourth quarter contributing to record assets under management at December 31, 2020, which will drive our advisory fee revenue for the first quarter of 2021.
Challenges Ahead
- Non-compensation expenses remained under close control and we were able to manage our operating environment throughout this year of remote work.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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