UPDATE 2-Wealth management boosts Stifel Financial Q3

Tue Nov 9, 2010 12:15pm EST

* Q3 adj EPS $0.72 vs est. $0.62

* Q3 rev $340.4 mln vs est. $289.7 mln

* Says Q4 to be hurt by $0.15/shr

* Shares rise 8 percent (Recasts, adds details, share movement)

Nov 9 (Reuters) - Stifel Financial Corp (SF.N), one of the fastest growing U.S. brokerages, reported a quarterly profit that beat market expectations on higher revenue from its wealth management services, sending its shares up as much as 8 percent.

St Louis-based Stifel, which is in the process of integrating the recently acquired Thomas Weisel, increased its forecast for merger-related expense for the fourth quarter by 10 cents a share. In August, the company had said its fourth-quarter earnings would be hurt by 5 cents a share due to these expenses. [ID:nSGE6790JE]

Stifel, which has been snapping up bargains in the last year, bought struggling Thomas Weisel Partners Group for about $318.2 million in stock in April.

For the third quarter, the company lost $84.3 million, or $2.05 a share, compared with a profit of $22.1 million, or 67 cents a share, a year ago.

Excluding a non-cash charge of $2.60 a share and Thomas Weisel merger-related expenses of $0.17 a share, Stifel earned 72 cents a share.

Analysts on average were expecting the company to post earnings of 62 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 18 percent to $340.4 million, beating market expectations of $289.7 million.

Stifel's Institutional group segment brought in $138 million, while revenue from global wealth management revenue rose 31 percent to $207.5 million.

Total assets increased 43 percent to $4.1 billion as of Sept. 30, compared with $2.9 billion a year ago.

Shares of Stifel were trading at $53.20 in afternoon trade on the New York Stock Exchange in heavy volume trade. Their value has increased 6 percent since the company posted better-than-expected quarterly results in August. [ID:nSGE6780JD] (Reporting by Rachel Chitra, Sweta Singh in Bangalore; Editing by Don Sebastian)

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