Nomura (NYSE:NMR) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Nomura (NYSE:NMR) announced its quarterly earnings data on Wednesday. The financial services provider reported $0.30 earnings per share for the quarter, beating analysts’ consensus estimates 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 0.9%

Shares of NMR traded up $0.09 during mid-day trading on Wednesday, hitting $9.70. The company’s stock had a trading volume of 724,355 shares, compared to its average volume of 1,621,055. The firm has a market capitalization of $28.44 billion, a price-to-earnings ratio of 12.12, a PEG ratio of 2.81 and a beta of 0.69. The company’s 50-day moving average is $8.95 and its 200-day moving average is $8.64. The company has a current ratio of 1.08, a quick ratio of 1.08 and a debt-to-equity ratio of 7.38. Nomura has a 52-week low of $6.59 and a 52-week high of $10.06.

Institutional Trading of Nomura

Hedge funds have recently bought and sold shares of the stock. Morgan Stanley increased its holdings in shares of Nomura by 7.0% in the 4th quarter. Morgan Stanley now owns 9,815,360 shares of the financial services provider’s stock valued at $82,351,000 after acquiring an additional 638,424 shares during the period. Goldman Sachs Group Inc. grew its stake in Nomura by 3.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 5,229,415 shares of the financial services provider’s stock valued at $43,875,000 after purchasing an additional 175,201 shares during the last quarter. Orion Porfolio Solutions LLC grew its stake in Nomura by 4,944.8% in the second quarter. Orion Porfolio Solutions LLC now owns 2,472,892 shares of the financial services provider’s stock valued at $16,272,000 after purchasing an additional 2,423,873 shares during the last quarter. Millennium Management LLC raised its holdings in Nomura by 55.4% in the fourth quarter. Millennium Management LLC now owns 1,451,595 shares of the financial services provider’s stock worth $12,179,000 after purchasing an additional 517,250 shares in the last quarter. Finally, Quantinno Capital Management LP raised its stake in shares of Nomura by 49.8% during the 2nd quarter. Quantinno Capital Management LP now owns 779,036 shares of the financial services provider’s stock worth $5,126,000 after acquiring an additional 259,158 shares in the last quarter. Hedge funds and other institutional investors own 15.14% of the company’s stock.

Wall Street Analysts Forecast Growth

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