Evercore Q4 Earnings & Revenues Beat Estimates, AUM Balance Rises

Evercore Inc.’s EVR fourth-quarter 2024 adjusted earnings per share of $3.41 surpassed the Zacks Consensus Estimate of $2.90. Also, the bottom line compared favorably with the prior-year quarter’s $2.02. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Results benefited from an increase in revenues generated from the Investment Management, and Investment Banking & Equities segments.  An improvement in assets under management (AUM) balance was another positive. However, the rise in expenses acted as a spoilsport.Net income attributable to common shareholders (GAAP basis) was $1.40 billion, which surged 69.7% from the year-ago quarter.For 2024, the company reported adjusted earnings per share of $9.42. The metric rose from the prior-year quarter’s adjusted reported earnings of $6.46 per share. Net income was $3.78 billion, which rose 48.1% from the year-ago quarter.EVR’s Revenues & Expenses RiseIn the fourth quarter of 2024, total revenues of $980.5 million beat the Zacks Consensus Estimate by 12.8%. Further, the top line increased 25% year over year.For full-year, total revenues were $3 billion, which rose 22.6% year over year.Total expenses increased 14.4% year over year to $762.7 million. This was mainly due to a rise in all the components of total expenses. The adjusted compensation ratio was 65.2%, down from the prior-year quarter’s 70.8%.Adjusted operating margin was 22.2%, up from the prior-year quarter’s 15.7%.EVR’s Quarterly Segmental Performance (GAAP Basis)Investment Banking & Equities: Net revenues increased 24.5% year over year to $953.9 million. This rise was primarily due to an increase in all the components of net revenues. Also, operating income surged 85.2% to $208.1 million.Investment Management: Net revenues were $21.4 million, up 19.2% from the prior-year quarter’s reported figure. Operating income was $4.5 million, down 16.3% year over year. AUM was $13.9 billion as of Dec. 31, 2024, up 13% year over year.EVR’s Balance Sheet PositionAs of Dec. 31, 2024, cash and cash equivalents were $873 million, and investment securities and certificates of deposit were $1.5 billion. Moreover, current assets exceeded current liabilities by $1.8 billion as of the same date.EVR’s Capital Distributions ActivitiesOn Feb. 4, 2025, the company declared a quarterly dividend of 80 cents per share. The dividend will be paid out on Mar. 14, 2025, to common stockholders of record as of Feb. 28.In the reported quarter, Evercore repurchased 0.1 million shares at an average price of $264.91.Our View on EvercoreEVR’s revenue growth was primarily due to its efforts to boost its client base in advisory solutions. Given the company’s decent liquidity position, capital distribution activities seem sustainable. However, a rising expense base is likely to impede bottom-line growth in the near term.Evercore Inc Price, Consensus and EPS Surprise  Evercore Inc price-consensus-eps-surprise-chart | Evercore Inc QuoteCurrently, Evercore carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other Investment BanksInteractive Brokers Group IBKR fourth-quarter 2024 adjusted earnings per share of $2.03 beat the Zacks Consensus Estimate of $1.86. The bottom line indicates a jump of 33.6% from the prior-year quarter’s reported actuals.Results were primarily aided by an increase in revenues. The company recorded growth in customer accounts in the quarter, which, along with a rise in daily average revenue trades, was another tailwind. However, higher expenses hurt the results to some extent.LPL Financial's LPLA fourth-quarter 2024 adjusted earnings of $4.25 per share handily outpaced the Zacks Consensus Estimate of $3.92. The bottom line also reflected year-over-year growth of 21.1%.Results benefited from robust revenue improvement, partly offset by higher expenses. LPLA recorded growth in brokerage and advisory assets, which acted as a tailwind.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report Evercore Inc (EVR): Free Stock Analysis Report LPL Financial Holdings Inc. (LPLA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks