We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Evercore (EVR - Free Report) delivered a positive earnings surprise of 17.9% in second-quarter 2018. Adjusted earnings per share of $1.65 surpassed the Zacks Consensus Estimate of $1.40. Also, the figure was 55.7% higher than the prior-year quarter.
Results benefited from an improvement in revenues and rise in assets under management (AUM). Further, the investment banking segment continued to perform decently due to increase in underwriting and advisory fees. However, higher expenses remained the undermining factor.
Net income available to common shareholders was $68.9 million, up significantly year over year from $18.2 million.
Revenue Improvement Offset by Expense Rise
Adjusted net revenues were $443.6 million, climbing 19% year over year. The growth was supported mainly by higher underwriting fees and advisory fees.
Total expenses rose 6% to $343.7 million from the prior-year quarter. All expense components increased on a year-over-year basis.
Adjusted operating margin improved to 26% from 24.7% recorded last year.
Quarterly Segment Performance (on adjusted basis)
Investment Banking: Net revenues increased 20% year over year to $428.6 million. Operating income rose 25% to $111.1 million. Advisory client transactions were 216,000, up 13% from the year-ago quarter.
Investment Management: Net revenues were $14.9 million, down 18% from the prior-year quarter. Operating income was $4.2 million compared with $2.9 million in the year-ago quarter. AUM of $9.6 million was recorded in the second quarter, up 10% year over year.
Balance Sheet Position
As of Jun 30, 2018, cash, cash equivalents and marketable securities totaled $653.9 million. Further, current assets exceeded current liabilities by $567.5 million as on the same date.
Our Viewpoint
Evercore’s second-quarter results seem to be decent. The company benefits from consistently rising investment banking revenues that have grown over time due to its strategic initiatives to bolster the segment. Also, it remains well poised to undertake any opportunistic expansions given its sound liquidity position.
TD Ameritrade Holding Corporation (AMTD - Free Report) pulled off a positive earnings surprise of 12.7% in third-quarter fiscal 2018 (ending Jun 30). The company reported earnings of 89 cents per share, significantly beating the Zacks Consensus Estimate of 79 cents. Moreover, results were up 85% from the prior-year quarter.
Reflecting the highest strong second-quarter net revenues in nine years, Goldman Sachs’ (GS - Free Report) pulled off a positive earnings surprise of 28.1% in second-quarter 2018. The company reported earnings per share of $5.98, comfortably beating the Zacks Consensus Estimate of $4.67. Further, the bottom line witnessed 51.4% year-over-year improvement.
E*TRADE Financial delivered a positive earnings surprise of 6.7% in second-quarter 2018. Earnings of 95 cents per share easily surpassed the Zacks Consensus Estimate of 89 cents. Moreover, results compared favorably with 70 cents recorded in the prior-year quarter.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Evercore (EVR) Q2 Earnings Beat Estimates, Revenues Rise
Evercore (EVR - Free Report) delivered a positive earnings surprise of 17.9% in second-quarter 2018. Adjusted earnings per share of $1.65 surpassed the Zacks Consensus Estimate of $1.40. Also, the figure was 55.7% higher than the prior-year quarter.
Results benefited from an improvement in revenues and rise in assets under management (AUM). Further, the investment banking segment continued to perform decently due to increase in underwriting and advisory fees. However, higher expenses remained the undermining factor.
Net income available to common shareholders was $68.9 million, up significantly year over year from $18.2 million.
Revenue Improvement Offset by Expense Rise
Adjusted net revenues were $443.6 million, climbing 19% year over year. The growth was supported mainly by higher underwriting fees and advisory fees.
Total expenses rose 6% to $343.7 million from the prior-year quarter. All expense components increased on a year-over-year basis.
Adjusted operating margin improved to 26% from 24.7% recorded last year.
Quarterly Segment Performance (on adjusted basis)
Investment Banking: Net revenues increased 20% year over year to $428.6 million. Operating income rose 25% to $111.1 million. Advisory client transactions were 216,000, up 13% from the year-ago quarter.
Investment Management: Net revenues were $14.9 million, down 18% from the prior-year quarter. Operating income was $4.2 million compared with $2.9 million in the year-ago quarter. AUM of $9.6 million was recorded in the second quarter, up 10% year over year.
Balance Sheet Position
As of Jun 30, 2018, cash, cash equivalents and marketable securities totaled $653.9 million. Further, current assets exceeded current liabilities by $567.5 million as on the same date.
Our Viewpoint
Evercore’s second-quarter results seem to be decent. The company benefits from consistently rising investment banking revenues that have grown over time due to its strategic initiatives to bolster the segment. Also, it remains well poised to undertake any opportunistic expansions given its sound liquidity position.
Evercore Inc Price, Consensus and EPS Surprise
Evercore Inc Price, Consensus and EPS Surprise | Evercore Inc Quote
Currently, Evercore carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Investment Banks
TD Ameritrade Holding Corporation (AMTD - Free Report) pulled off a positive earnings surprise of 12.7% in third-quarter fiscal 2018 (ending Jun 30). The company reported earnings of 89 cents per share, significantly beating the Zacks Consensus Estimate of 79 cents. Moreover, results were up 85% from the prior-year quarter.
Reflecting the highest strong second-quarter net revenues in nine years, Goldman Sachs’ (GS - Free Report) pulled off a positive earnings surprise of 28.1% in second-quarter 2018. The company reported earnings per share of $5.98, comfortably beating the Zacks Consensus Estimate of $4.67. Further, the bottom line witnessed 51.4% year-over-year improvement.
E*TRADE Financial delivered a positive earnings surprise of 6.7% in second-quarter 2018. Earnings of 95 cents per share easily surpassed the Zacks Consensus Estimate of 89 cents. Moreover, results compared favorably with 70 cents recorded in the prior-year quarter.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>