StepStone Group (STEP) Q3 earnings report preview: what to look for

What happened

StepStone Group, a private markets investment firm, is scheduled to report its third-quarter results this Thursday after the market closes. Analysts expect revenue to grow 17.4% year over year, slower than the 35.2% growth in the same quarter last year; estimates were generally reaffirmed recently.

Confirmed

Global impact / market context

The expected slowdown matters because revenue growth can influence how investors judge StepStone’s business momentum. The company also missed revenue expectations last quarter and significantly missed earnings-per-share estimates, a measure of profit for each share, so the upcoming results will show whether performance is improving or remains weaker than expected.

Analyst inference

The article notes that comparable asset managers have reported more modest revenue growth: T. Rowe Price rose 5.3% and Artisan Partners 3.7%, both above analyst forecasts. These results offer context, but differences between firms mean they do not establish what StepStone will report.

Analyst inference

What to watch

1. Check whether StepStone’s reported revenue meets the market’s 17.4% year-over-year growth expectation, since a shortfall could reinforce concerns about slowing business momentum. Analyst inference
2. Compare reported earnings per share with analysts’ estimates; the company significantly missed that measure last quarter, so another shortfall could weigh on confidence in its results. Analyst inference
3. Look for management’s explanation of revenue growth and any updated outlook, which could clarify whether the expected slowdown reflects a lasting change or a temporary quarter. Analyst inference

Evidence

• stockstory.org