Nomura (NYSE:NMR) Posts Earnings Results, Beats Expectations By $0.07 EPS

Nomura (NYSE:NMR) issued its earnings results on Wednesday. The financial services provider reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.23 by $0.07, Zacks reports. Nomura had a net margin of 7.64% and a return on equity of 9.70%.

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 Stock Up 1.1%

Shares of Nomura stock traded up $0.10 during midday trading on Wednesday, hitting $9.71. The company had a trading volume of 748,765 shares, compared to its average volume of 1,621,332. Nomura has a 52-week low of $6.59 and a 52-week high of $10.06. The company has a debt-to-equity ratio of 7.38, a quick ratio of 1.08 and a current ratio of 1.08. The stock has a market capitalization of $28.50 billion, a P/E ratio of 12.16, a P/E/G ratio of 2.81 and a beta of 0.69. The company has a 50 day moving average of $8.95 and a 200 day moving average of $8.64.

Hedge Funds Weigh In On Nomura

A number of hedge funds have recently bought and sold shares of NMR. Osaic Holdings Inc. increased its stake in Nomura by 1,019.0% during the 2nd quarter. Osaic Holdings Inc. now owns 6,434 shares of the financial services provider’s stock valued at $42,000 after purchasing an additional 5,859 shares in the last quarter. Sei Investments Co. bought a new stake in shares of Nomura in the 2nd quarter worth $67,000. EP Wealth Advisors LLC purchased a new position in shares of Nomura in the second quarter worth $72,000. Flow Traders U.S. LLC purchased a new stake in shares of Nomura during the second quarter valued at $75,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC bought a new stake in Nomura in the 4th quarter worth about $76,000. Institutional investors own 15.14% of the company’s stock.

Wall Street Analysts Forecast Growth

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

Nomura Company Profile

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.