Private markets investment firm StepStone Group (NASDAQ:STEP) will be reporting earnings this Thursday after the bell. Here’s what to expect.
StepStone Group beat analysts’ revenue expectations by 6.4% last quarter, reporting revenues of $282.3 million, up 35.2% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
Is StepStone Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting StepStone Group’s revenue to grow 71.5% year on year to $418.3 million, improving from the 31.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.62 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. StepStone Group has missed Wall Street’s revenue estimates four times over the last two years.
Looking at StepStone Group’s peers in the custody bank segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Franklin Resources delivered year-on-year revenue growth of 38.3%, beating analysts’ expectations by 11.5%, and Hamilton Lane reported revenues up 18.2%, topping estimates by 2.6%. Franklin Resources traded up 4.6% following the results.
Read our full analysis of Franklin Resources’s results here and Hamilton Lane’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability in 2025. While some of the custody bank stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. StepStone Group is down 9.8% during the same time and is heading into earnings with an average analyst price target of $84 (compared to the current share price of $62.97).
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