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Moelis & Company's (MC) Q2 Earnings Top as Revenues Rise Y/Y
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Moelis & Company’s (MC - Free Report) second-quarter 2024 adjusted earnings per share (EPS) of 18 cents handily surpassed the Zacks Consensus Estimate of 11 cents. The bottom line improved from a loss of 4 cents per share in the prior-year quarter.
Results benefited from a rise in revenues and other income. Also, the company had a solid liquidity position in the quarter. However, an increase in expenses acted as an undermining factor.
Net income (GAAP basis) was $14.9 million against a loss of $13.2 million in the prior-year quarter.
Revenues Rise, Expenses Up
Total revenues (GAAP basis) grew 47.1% year over year to $264.6 million. This was driven by a rise in transaction completions across all the key offerings. Moreover, the top line surpassed the Zacks Consensus Estimate of $231.4 million.
Total operating expenses (GAAP basis) were $244.5 million, up 29.1%. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimates for total operating expenses were $219.8 million.
Other income (GAAP basis) was $1.7 million in the reported quarter, in contrast to $5.6 million in other expenses in the prior-year quarter.
As of Jun 30, 2024, the company had cash and liquid investments of $191.3 million, with no debt or goodwill.
Our View
Moelis & Company’s global expansion initiatives and diverse operations across sectors and industries bode well. However, heightened geopolitical and macroeconomic uncertainties will continue to adversely impact the company’s financials.
Moelis & Company Price, Consensus and EPS Surprise
Morgan Stanley’s (MS - Free Report) second-quarter 2024 earnings of $1.82 per share handily outpaced the Zacks Consensus Estimate of $1.65. The bottom line also compared favorably with $1.24 per share reported in the prior-year quarter.
Its investment banking (IB) business rebounded. Advisory fees and underwriting fees witnessed solid momentum in the quarter. Specifically, equity underwriting income and fixed income underwriting income were increased. Lower provisions were another tailwind for MS. Yet, higher non-interest expenses along with weakness in the wealth management business were undermining factors.
The Goldman Sachs Group, Inc.’s (GS - Free Report) second-quarter 2024 EPS of $8.62 surpassed the Zacks Consensus Estimate of $8.52. It compared favorably with $3.08 reported in the year-earlier quarter.
Results benefited from the strength in Fixed Income, Currency and Commodities Client Execution financing revenues, IB and consumer banking business. Further, a decline in expenses and provisions acted as a tailwind for GS.
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Moelis & Company's (MC) Q2 Earnings Top as Revenues Rise Y/Y
Moelis & Company’s (MC - Free Report) second-quarter 2024 adjusted earnings per share (EPS) of 18 cents handily surpassed the Zacks Consensus Estimate of 11 cents. The bottom line improved from a loss of 4 cents per share in the prior-year quarter.
Results benefited from a rise in revenues and other income. Also, the company had a solid liquidity position in the quarter. However, an increase in expenses acted as an undermining factor.
Net income (GAAP basis) was $14.9 million against a loss of $13.2 million in the prior-year quarter.
Revenues Rise, Expenses Up
Total revenues (GAAP basis) grew 47.1% year over year to $264.6 million. This was driven by a rise in transaction completions across all the key offerings. Moreover, the top line surpassed the Zacks Consensus Estimate of $231.4 million.
Total operating expenses (GAAP basis) were $244.5 million, up 29.1%. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimates for total operating expenses were $219.8 million.
Other income (GAAP basis) was $1.7 million in the reported quarter, in contrast to $5.6 million in other expenses in the prior-year quarter.
As of Jun 30, 2024, the company had cash and liquid investments of $191.3 million, with no debt or goodwill.
Our View
Moelis & Company’s global expansion initiatives and diverse operations across sectors and industries bode well. However, heightened geopolitical and macroeconomic uncertainties will continue to adversely impact the company’s financials.
Moelis & Company Price, Consensus and EPS Surprise
Moelis & Company price-consensus-eps-surprise-chart | Moelis & Company Quote
Currently, Moelis & Company has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Investment Banks
Morgan Stanley’s (MS - Free Report) second-quarter 2024 earnings of $1.82 per share handily outpaced the Zacks Consensus Estimate of $1.65. The bottom line also compared favorably with $1.24 per share reported in the prior-year quarter.
Its investment banking (IB) business rebounded. Advisory fees and underwriting fees witnessed solid momentum in the quarter. Specifically, equity underwriting income and fixed income underwriting income were increased. Lower provisions were another tailwind for MS. Yet, higher non-interest expenses along with weakness in the wealth management business were undermining factors.
The Goldman Sachs Group, Inc.’s (GS - Free Report) second-quarter 2024 EPS of $8.62 surpassed the Zacks Consensus Estimate of $8.52. It compared favorably with $3.08 reported in the year-earlier quarter.
Results benefited from the strength in Fixed Income, Currency and Commodities Client Execution financing revenues, IB and consumer banking business. Further, a decline in expenses and provisions acted as a tailwind for GS.