Moelis & Company (MC - Free Report) recorded third-quarter 2020 adjusted earnings per share of 54 cents, surpassing the Zacks Consensus Estimate of 2 cents. However, the figure deteriorated from the year-ago quarter’s reported figure of 76 cents per share.
Results were primarily hurt by a fall in revenues. However, lower expenses and a solid liquidity position were tailwinds.
Net income (GAAP basis) was $41.8 million or 54 cents per share compared with net income of $54.7 million or 73 cents recorded in the prior-year quarter.
Revenues & Expenses Decline
Total revenues fell 10% year over year to $207.6 million. The downside was primarily caused by lesser merger and acquisitions (M&A) transactions. However, the top line surpassed the Zacks Consensus Estimate of $140.8 million.
Total operating expenses (adjusted basis) were $154.9 million, down 8.5% year over year. Decline in compensation and benefits costs led to the fall.
Other expenses (GAAP basis) were $1.6 million against other income of $14.3 million recorded in the year-ago quarter.
As of Sep 30, 2020, the company had cash and liquid investments of $266.3 million, with no debt or goodwill.
Dividend Hike
The company declared a dividend hike of 50% from the second quarter to 38.25 cents per share. The dividend will be paid out on Nov 30, 2020 to shareholders of record as of Nov 6.
Our Take
The company’s solid liquidity position and absence of debt strengthens the balance sheet and supports it capital deployment activities. Fall in expenses also acted as a tailwind. However, decline in revenues is a concern for the company. Further, as it expands operations into sectors and products, overall costs are expected to remain elevated.
Currently, Moelis & Company 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 Companies
Navient Corporation (NAVI - Free Report) reported third-quarter 2020 core earnings per share of 99 cents that beat the Zacks Consensus Estimate of 78 cents. Also, the bottom line was above the year-ago quarter’s figure of 62 cents.
Riding on solid mortgage banking, Synovus Financial (SNV - Free Report) reported third-quarter 2020 adjusted earnings of 89 cents per share, beating the Zacks Consensus Estimate of 48 cents. However, the reported figure comes in 8.7% lower than the prior-year quarter’s tally.
Northern Trust (NTRS - Free Report) delivered third-quarter 2020 earnings per share of $1.32, missing the Zacks Consensus Estimate of $1.40, on lower revenues. Also, the reported figure declined 21.9% year over year. Results included certain one-time items.
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Moelis & Company (MC - Free Report) recorded third-quarter 2020 adjusted earnings per share of 54 cents, surpassing the Zacks Consensus Estimate of 2 cents. However, the figure deteriorated from the year-ago quarter’s reported figure of 76 cents per share.
Results were primarily hurt by a fall in revenues. However, lower expenses and a solid liquidity position were tailwinds.
Net income (GAAP basis) was $41.8 million or 54 cents per share compared with net income of $54.7 million or 73 cents recorded in the prior-year quarter.
Revenues & Expenses Decline
Total revenues fell 10% year over year to $207.6 million. The downside was primarily caused by lesser merger and acquisitions (M&A) transactions. However, the top line surpassed the Zacks Consensus Estimate of $140.8 million.
Total operating expenses (adjusted basis) were $154.9 million, down 8.5% year over year. Decline in compensation and benefits costs led to the fall.
Other expenses (GAAP basis) were $1.6 million against other income of $14.3 million recorded in the year-ago quarter.
As of Sep 30, 2020, the company had cash and liquid investments of $266.3 million, with no debt or goodwill.
Dividend Hike
The company declared a dividend hike of 50% from the second quarter to 38.25 cents per share. The dividend will be paid out on Nov 30, 2020 to shareholders of record as of Nov 6.
Our Take
The company’s solid liquidity position and absence of debt strengthens the balance sheet and supports it capital deployment activities. Fall in expenses also acted as a tailwind. However, decline in revenues is a concern for the company. Further, as it expands operations into sectors and products, overall costs are expected to remain elevated.
Currently, Moelis & Company 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 Companies
Navient Corporation (NAVI - Free Report) reported third-quarter 2020 core earnings per share of 99 cents that beat the Zacks Consensus Estimate of 78 cents. Also, the bottom line was above the year-ago quarter’s figure of 62 cents.
Riding on solid mortgage banking, Synovus Financial (SNV - Free Report) reported third-quarter 2020 adjusted earnings of 89 cents per share, beating the Zacks Consensus Estimate of 48 cents. However, the reported figure comes in 8.7% lower than the prior-year quarter’s tally.
Northern Trust (NTRS - Free Report) delivered third-quarter 2020 earnings per share of $1.32, missing the Zacks Consensus Estimate of $1.40, on lower revenues. Also, the reported figure declined 21.9% year over year. Results included certain one-time items.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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