Evercore Inc.’s EVR third-quarter 2024 adjusted earnings per share of $2.04 surpassed the Zacks Consensus Estimate of $1.95. Also, the bottom line compared favorably with the prior-year quarter’s reported figure of $1.30. 

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Results benefited from an increase in revenues generated from the Investment Management and Investment Banking & Equities segments.  Further, an improvement in assets under management (AUM) balance was another positive. However, the rise in expenses acted as a spoilsport. 

Net income attributable to common shareholders (GAAP basis) was $78.4 million, which surged 50.3% from the year-ago quarter.

EVR’s Revenues & Expenses Rise

In the third quarter of 2024, total revenues of $738.4 million beat the Zacks Consensus Estimate of $695.4 million. Further, the top line increased 28.6% year over year.

On an adjusted basis, net revenues came in at $739.5 million, up 28.4% year over year.

Total expenses increased 24.1% year over year to $612.2 million. This was mainly due to a rise in all the components of total expenses.

The adjusted compensation ratio was 66%, down from the prior-year quarter’s 68%.

Adjusted operating margin was 18.2%, up from the prior-year quarter’s 14.4%.

EVR’s Quarterly Segmental Performance (GAAP Basis)

Investment Banking & Equities: Net revenues increased 29% year over year to $712.8 million. This rise was primarily due to an increase in all the components of net revenues. Also, operating income surged 59% to $116.4 million.

Investment Management: Net revenues were $21.4 million, up 22% from the prior-year quarter’s reported figure. Operating income was $5.6 million, up 55.1% year over year. 

AUM was $13.9 billion as of Sept. 30, 2024, up 23.2% year over year.

EVR’s Balance Sheet Position

As of Sept. 30, 2024, cash and cash equivalents were $533.1 million and investment securities and certificates of deposit were $1.3 billion. Moreover, current assets exceeded current liabilities by $1.6 billion as of the same date.

EVR’s Capital Distributions Activities

On Oct. 22, the company declared a quarterly dividend of 80 cents per share. The dividend will be paid on Dec. 13, 2024, to common stockholders on record as of Nov. 29.

In the reported quarter, Evercore repurchased 0.4 million shares at an average price of $236.91.

Our View on Evercore

Evercore’s revenue growth was primarily due to its efforts to boost its client base in advisory solutions. Given the company’s decent liquidity position, capital distribution activities seem sustainable. However, a rising expense base is likely to impede the bottom-line growth in the near term.

Evercore Inc Price, Consensus and EPS Surprise

Evercore Inc price-consensus-eps-surprise-chart | Evercore Inc Quote

Currently, Evercore carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Finance Stocks

Interactive Brokers Group’s IBKR third-quarter 2024 adjusted earnings per share of $1.75 reflected a rise of 12.9% from the prior-year quarter’s actual.  The Zacks Consensus Estimate for the metric was $1.78.

IBKR’s results were primarily aided by an increase in revenues. The company recorded growth in customer accounts in the quarter, which, along with a rise in daily average revenue trades, was another tailwind. However, higher expenses hurt the results to some extent.

Charles Schwab’s SCHW third-quarter 2024 adjusted earnings of 77 cents per share beat the Zacks Consensus Estimate of 75 cents. The bottom line remained stable year over year.

SCHW’s results benefited from the solid performance of the asset management business, which drove revenues. The absence of fee waivers and solid brokerage account numbers acted as tailwinds during the quarter. However, higher funding costs posed a major headwind. The company also recorded a rise in adjusted expenses.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report

Interactive Brokers Group, Inc. (IBKR) : Free Stock Analysis Report

Evercore Inc (EVR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research