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.
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%.
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.
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.
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.
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-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.
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
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.