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Evercore (EVR) Down 2.5% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Evercore (EVR - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Evercore due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Evercore Q2 Earnings Beat on Higher Revenues
Evercore’s second-quarter adjusted earnings per share of $1.81 surpassed the Zacks Consensus Estimate of $1.66. Also, the bottom line compared favorably with the prior-year quarter’s reported figure of 96 cents.
Results benefited from an increase in revenues generated from the Investment Management and Investment Banking & Equities segments. Further, an improvement in assets under management balance was another positive. However, the rise in expenses was a woe.
Net income attributable to common shareholders (GAAP basis) was $73.8 million, which surged 98.2% from the year-ago quarter.
Revenues & Expenses Rise
In the second quarter of 2024, total revenues of $693.4 million beat the Zacks Consensus Estimate of $620.4 million. Further, the top line increased 37.7% year over year.
On an adjusted basis, net revenues came in at $695.3 million, up 37.6% year over year.
Total expenses increased 31.5% to $581 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 67%.
Adjusted operating margin was 16.4%, up from the prior-year quarter’s 12.6%.
Quarterly Segmental Performance (GAAP Basis)
Investment Banking & Equities: Net revenues increased 38.9% year over year to $670 million. This rise was primarily due to an increase in advisory fees and commissions and related revenues. Also, operating income surged 92.3% to $78.9 million.
Investment Management: Net revenues were $19.2 million, up 11.9% from the prior-year quarter’s reported figure. Operating income was $4.6 million, up 20.6% from the year-ago quarter.
AUM was $13.2 billion as of Jun 30, 2024, up 14.6% year over year.
Capital Distributions Activities
In the reported quarter, Evercore repurchased 0.3 million shares at an average price of $186.36.
Outlook
Management expects the tax rate in the third and fourth quarters to continue to be similar to the recent historical tax rates of 25.8%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.72% due to these changes.
VGM Scores
Currently, Evercore has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Evercore has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Evercore belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, Goldman Sachs (GS - Free Report) , has gained 1.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Goldman reported revenues of $12.73 billion in the last reported quarter, representing a year-over-year change of +16.9%. EPS of $8.62 for the same period compares with $3.08 a year ago.
Goldman is expected to post earnings of $8.46 per share for the current quarter, representing a year-over-year change of +54.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Goldman. Also, the stock has a VGM Score of F.
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Evercore (EVR) Down 2.5% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Evercore (EVR - Free Report) . Shares have lost about 2.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Evercore due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Evercore Q2 Earnings Beat on Higher Revenues
Evercore’s second-quarter adjusted earnings per share of $1.81 surpassed the Zacks Consensus Estimate of $1.66. Also, the bottom line compared favorably with the prior-year quarter’s reported figure of 96 cents.
Results benefited from an increase in revenues generated from the Investment Management and Investment Banking & Equities segments. Further, an improvement in assets under management balance was another positive. However, the rise in expenses was a woe.
Net income attributable to common shareholders (GAAP basis) was $73.8 million, which surged 98.2% from the year-ago quarter.
Revenues & Expenses Rise
In the second quarter of 2024, total revenues of $693.4 million beat the Zacks Consensus Estimate of $620.4 million. Further, the top line increased 37.7% year over year.
On an adjusted basis, net revenues came in at $695.3 million, up 37.6% year over year.
Total expenses increased 31.5% to $581 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 67%.
Adjusted operating margin was 16.4%, up from the prior-year quarter’s 12.6%.
Quarterly Segmental Performance (GAAP Basis)
Investment Banking & Equities: Net revenues increased 38.9% year over year to $670 million. This rise was primarily due to an increase in advisory fees and commissions and related revenues. Also, operating income surged 92.3% to $78.9 million.
Investment Management: Net revenues were $19.2 million, up 11.9% from the prior-year quarter’s reported figure. Operating income was $4.6 million, up 20.6% from the year-ago quarter.
AUM was $13.2 billion as of Jun 30, 2024, up 14.6% year over year.
Capital Distributions Activities
In the reported quarter, Evercore repurchased 0.3 million shares at an average price of $186.36.
Outlook
Management expects the tax rate in the third and fourth quarters to continue to be similar to the recent historical tax rates of 25.8%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.72% due to these changes.
VGM Scores
Currently, Evercore has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Evercore has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Evercore belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, Goldman Sachs (GS - Free Report) , has gained 1.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Goldman reported revenues of $12.73 billion in the last reported quarter, representing a year-over-year change of +16.9%. EPS of $8.62 for the same period compares with $3.08 a year ago.
Goldman is expected to post earnings of $8.46 per share for the current quarter, representing a year-over-year change of +54.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Goldman. Also, the stock has a VGM Score of F.