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Moelis & Company (MC) Q3 Earnings Beat on Higher Revenues
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Moelis & Company’s (MC - Free Report) third-quarter 2021 adjusted earnings per share of $1.77 comfortably surpassed the Zacks Consensus Estimate of $1.36 per share. The bottom line represents significant growth from 54 cents earned in the prior-year quarter.
Results were driven by a substantial improvement in revenues. Moreover, the company had a solid liquidity position in the reported quarter. However, a rise in expenses was the undermining factor.
Net income (GAAP basis) was $140.5 million or $1.76 per share, up from $41.8 million or 54 cents per share recorded in the prior-year quarter.
Revenues & Expenses Increase Significantly
Total revenues jumped significantly year over year from $207.6 million to $490.8 million. The top line outpaced the Zacks Consensus Estimate of $405.7 million.
Total operating expenses (adjusted basis) were $337 million, up significantly year over year. The rise was due to an increase in both compensation and benefits costs, and non-compensation costs.
Other income was $30.4 million against other expenses of $1.6 million recorded in the prior-year quarter.
As of Sep 30, 2021, the company had cash and liquid investments of $558.4 million, with no debt or goodwill.
Capital Deployment Update
In the nine months ended Sep 30, 2021, the company repurchased 1.8 million shares for $100 million.
Additionally, Moelis & Company announced a dividend of $3.10 per share, comprising a special dividend of $2.50 per share. The total dividend will be paid out on Nov 19 to shareholders of record as of Nov 8.
Our View
Moelis & Company’s global expansion initiatives along with diverse operations across sectors and industries bode well for the future. The company's enhanced capital deployments reflect a strong balance sheet.
Moelis & Company Price, Consensus and EPS Surprise
Charles Schwab’s (SCHW - Free Report) third-quarter 2021 adjusted earnings of 84 cents per share surpassed the Zacks Consensus Estimate of 80 cents. The bottom line jumped 65% from the prior-year quarter.
Interactive Brokers Group’s (IBKR - Free Report) third-quarter 2021 adjusted earnings per share of 78 cents surpassed the Zacks Consensus Estimate of 75 cents. The bottom line reflects growth of 47.2% from the prior-year quarter.
Morgan Stanley’s (MS - Free Report) third-quarter 2021 adjusted earnings of $2.04 per share easily outpaced the Zacks Consensus Estimate of $1.70. The bottom line reflects a rise of 22.9% from the year-ago quarter’s level.
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Moelis & Company (MC) Q3 Earnings Beat on Higher Revenues
Moelis & Company’s (MC - Free Report) third-quarter 2021 adjusted earnings per share of $1.77 comfortably surpassed the Zacks Consensus Estimate of $1.36 per share. The bottom line represents significant growth from 54 cents earned in the prior-year quarter.
Results were driven by a substantial improvement in revenues. Moreover, the company had a solid liquidity position in the reported quarter. However, a rise in expenses was the undermining factor.
Net income (GAAP basis) was $140.5 million or $1.76 per share, up from $41.8 million or 54 cents per share recorded in the prior-year quarter.
Revenues & Expenses Increase Significantly
Total revenues jumped significantly year over year from $207.6 million to $490.8 million. The top line outpaced the Zacks Consensus Estimate of $405.7 million.
Total operating expenses (adjusted basis) were $337 million, up significantly year over year. The rise was due to an increase in both compensation and benefits costs, and non-compensation costs.
Other income was $30.4 million against other expenses of $1.6 million recorded in the prior-year quarter.
As of Sep 30, 2021, the company had cash and liquid investments of $558.4 million, with no debt or goodwill.
Capital Deployment Update
In the nine months ended Sep 30, 2021, the company repurchased 1.8 million shares for $100 million.
Additionally, Moelis & Company announced a dividend of $3.10 per share, comprising a special dividend of $2.50 per share. The total dividend will be paid out on Nov 19 to shareholders of record as of Nov 8.
Our View
Moelis & Company’s global expansion initiatives along with diverse operations across sectors and industries bode well for the future. The company's enhanced capital deployments reflect a strong balance sheet.
Moelis & Company Price, Consensus and EPS Surprise
Moelis & Company price-consensus-eps-surprise-chart | Moelis & Company Quote
Currently, Moelis & Company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Charles Schwab’s (SCHW - Free Report) third-quarter 2021 adjusted earnings of 84 cents per share surpassed the Zacks Consensus Estimate of 80 cents. The bottom line jumped 65% from the prior-year quarter.
Interactive Brokers Group’s (IBKR - Free Report) third-quarter 2021 adjusted earnings per share of 78 cents surpassed the Zacks Consensus Estimate of 75 cents. The bottom line reflects growth of 47.2% from the prior-year quarter.
Morgan Stanley’s (MS - Free Report) third-quarter 2021 adjusted earnings of $2.04 per share easily outpaced the Zacks Consensus Estimate of $1.70. The bottom line reflects a rise of 22.9% from the year-ago quarter’s level.