By Rebecca Ungarino

Lazard reported fourth-quarter profit that sailed past Wall Street's estimates as revenue from its financial advisory business, particularly in counseling companies on restructurings, rose last year.

The results sent shares higher by 4.1% in Thursday trading.

Lazard Chief Executive Peter Orszag said on a call with reporters that he views the potential for a "much more favorable regulatory and antitrust environment" to boost dealmaking activity this year.

In 2024, financial advisory revenue jumped 27% from a year earlier while asset management revenue rose 3%. Orszag said the firm's restructuring liability and management practice was a meaningful revenue driver throughout the year, with the group moving to a "more balanced mix" between work with creditors and debtors. The practice historically has been more heavily focused on advising debtors.

The firm reported net income of $86 million for the fourth quarter, up 36% from a year ago, beating forecasts of $48 million. That amounted to per-share earnings of 80 cents, topping the 46 cents analysts anticipated.

The firm's results reflect a pattern this month across Wall Street: a string of earnings reports showing that a rising tide of dealmaking activity over the past year against a healthy economy in the U.S. has generally helped lift big banks' bottom lines.

Orszag, known for his work both on Wall Street and in Washington as a veteran banker and former Obama administration official, is a little more than a year into his tenure as CEO.

He is leading the New York-based firm at a time when the financial services industry widely expects President Donald Trump's administration to foster a friendlier environment for dealmakers. It remains to be seen how new regulators' approaches will take shape.

Lazard shares hit a record high following Election Day in the U.S. in November, when investors rewarded the financial sector after Trump's win. The stock has fallen 9% since its record on Nov. 6, while the S&P 500 has advanced 2% in the same time.

On the call with reporters, Orszag reiterated his interest in expanding Lazard's asset management business through potential acquisitions.

"It's got to have a cultural fit, it's got to have a strategic fit, and be in an area that we think makes sense. And the valuation has to be in a in a zip code that we think will be shareholder-value enhancing," he said. "And I've also said we're going to be patient to find the right match. So we haven't done it yet."

Write to Rebecca Ungarino at rebecca.ungarino@barrons.com

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January 30, 2025 10:09 ET (15:09 GMT)

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