Evercore Inc. (EVR) reported strong financial results for the third quarter of 2024, reflecting a continued recovery in the financial markets and M&A activity. The company's adjusted earnings per share of $2.04 beat analysts' expectations of $1.96, driven by higher advisory fees and underwriting revenue.

Advisory fees, the company's main revenue source, rose 27% year-over-year to $593.2 million, driven by an increase in large transactions and a higher number of advisory fees earned during the quarter. Underwriting fees also saw a significant 43% increase to $44.1 million, as Evercore participated in more capital markets transactions.

The company's adjusted operating margin expanded by 385 basis points to 18.2%, attributable to higher revenues and a lower adjusted compensation ratio of 66%, compared to 68% in the prior-year period. However, non-compensation costs increased by 15% due to higher travel expenses, professional fees, and technology-related costs.

Evercore's CEO, John Weinberg, expressed optimism about the gradual recovery in the M&A market, citing robust backlogs and activity levels across the firm's businesses. He highlighted notable transactions in areas such as financial services, energy transition, and sponsors, reflecting the firm's strategic investments.

While the upcoming U.S. election and geopolitical tensions may cause some short-term hesitancy, Weinberg stated that Evercore does not expect these factors to significantly impact medium-term merger activity. However, the regulatory environment could affect larger deals post-election.