Lazard Inc.’s LAZ fourth-quarter 2024 adjusted earnings per share of 78 cents topped the Zacks Consensus Estimate of 51 cents. This compared favorably with earnings of 66 cents in the year-ago quarter.

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Lazard’s results were positively impacted by increases in revenues in the financial advisory, asset management and Corporate segments. A decline in expenses was added positive. However, the lower assets under management (AUM) balance acted as a spoilsport. 

Shares of the company rose 4.6% following the release of its fourth-quarter 2024 results.

Lazard’s net income (GAAP) was $86.3 million, which increased 36% from the prior-year quarter.

In 2024, earnings of $2.34 per share topped the consensus estimate of $2.06. The metric rose from 77 cents in 2023. Net income was $279.9 million in 2024 against negative net income of $75.5 million in the prior year.

Lazard’s Revenues Increase Y/Y

Quarterly operating revenues were $812.4 million, which rose 7% year over year. Also, the top line surpassed the Zacks Consensus Estimate by 9.9%.

For 2024, operating revenue was $2.89 billion, which topped the Zacks Consensus Estimate by 2.5%. Also, the top line rose 18% year over year.

Lazard’s Expenses Down

Operating expenses were $709.8 million, down 3% year over year. 

The ratio of adjusted compensation expenses to operating revenues was 65.6%, down from the year-earlier quarter’s 67.8%. The ratio of adjusted non-compensation expenses to operating revenues was 19%, down from the year-ago quarter’s 19.5%.

Lazard’s Segmental Performance

Financial Advisory: The segment’s adjusted operating revenues were $507.7 million, rising 6% from the year-earlier quarter. 

Asset Management: Segmental adjusted operating revenues of $287.2 million increased 5% from the prior-year quarter. 

Corporate: Adjusted operating revenues from this segment were $17.6 million, up 77% from the year-earlier quarter.

LAZ’s AUM Declines

As of Dec. 31, 2024, the total AUM was $226.3 billion, which decreased 8.2% from $246.7 in the prior-year quarter. 

The quarter witnessed a foreign exchange appreciation of $11.3 billion and net outflows of $10.1 billion. 

The average AUM in the reported quarter was $233.8 billion, down 0.1% year over year.

Lazard’s Balance Sheet Position Strong

The company’s cash and cash equivalents totaled $1.3 billion as of Dec. 31, 2024, marginally up from the prior-year quarter. Stockholders’ equity was $685.2 million, up 0.7% sequentially.

LAZ’s Share Repurchase Update

In the reported quarter, Lazard repurchased $16 million worth of its common shares.

Lazard’s Dividend Update

On Jan. 29, 2025, the company declared a quarterly dividend of 50 cents on its outstanding common stock. The dividend is payable on Feb. 21, 2025, to stockholders of record as of Feb. 10, 2025.

Our View on LAZ

Lazard is focused on growing organically, as evidenced by an increase in revenues. A strong liquidity position will aid its financials in the upcoming period. However, the increased dependence on advisory revenues and continued net outflows will affect Lazard’s top-line growth in the upcoming period. 

Lazard, Inc. Price, Consensus and EPS Surprise

Lazard, Inc. price-consensus-eps-surprise-chart | Lazard, Inc. Quote

Currently, Lazard carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performances of Other Asset Managers

Invesco’s IVZ fourth-quarter 2024 adjusted earnings of 52 cents per share surpassed the Zacks Consensus Estimate of 49 cents. Moreover, the bottom line increased 10.6% from the prior-year quarter.

The results primarily gained from a decline in adjusted expenses and higher adjusted net revenues. An increase in the AUM balance on decent inflows was a positive for IVZ.

BlackRock’s BLK fourth-quarter 2024 adjusted earnings of $11.93 per share surpassed the Zacks Consensus Estimate of $11.44. The figure reflects a rise of 23.5% from the year-ago quarter.

BLK’s results benefited from a rise in revenues. AUM witnessed robust growth and touched the $11.55-trillion mark, driven by net inflows, partially offset by market depreciation and negative forex impacts. However, higher expenses and lower non-operating income acted as headwinds.

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