Moelis & Company (MC - Free Report) recorded fourth-quarter 2020 adjusted earnings per share of $1.99, surpassing the Zacks Consensus Estimate of $1.33. Also, the bottom line improved from the year-ago quarter’s 38 cents per share.
Results were primarily driven by a substantial growth in revenues. Further, the company had a solid liquidity position during the quarter. However, rise in expenses was the undermining factor.
Net income (GAAP basis) was $155.6 million or $1.97 per share, significantly up from $27.2 million or 38 cents per share recorded in the prior-year quarter.
In 2020, adjusted earnings of $2.91 per share beat the consensus estimate of $2.25 and were up 48% year over year. Net income (GAAP basis) was $218.4 million or $2.95 per share, up from $135.7 million or $1.89 per share in 2019.
Revenues & Expenses Rise
Total revenues in the reported quarter jumped 89% year over year to $422 million. The rise was primarily driven by high level of merger and acquisitions (M&A) activity and continued strength in capital markets and restructuring activity. Further, the top line outpaced the Zacks Consensus Estimate of $306.9 million.
In 2020, total revenues grew 26% to $943.3 million. Also, it beat the consensus estimate of $831.8 million.
Total operating expenses (adjusted basis) were $215.1 million, up 7% year over year. Rise in compensation and benefits costs led to the increase.
Other expenses (adjusted basis) were $0.7 million, down 89%.
As of Dec 31, 2020, the company had cash and liquid investments of $375.1 million, with no debt or goodwill.
Dividend Hike
Moelis & Company declared a dividend of 55 cents per share, representing a hike of 44% from the prior payout. The dividend will be paid out on Mar 26 to shareholders on record as of Feb 22.
Share Repurchase Update
During 2020, the company repurchased 1.2 million shares for a total cost of $44.3 million.
Our View
Moelis & Company’s global expansion initiatives and solid M&A activities bode well for the future. The company's enhanced capital deployments reflect a strong balance sheet.
Currently, Moelis & Company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance & Earnings Date of Other Companies
Evercore’s (EVR - Free Report) fourth-quarter 2020 adjusted earnings per share of $5.67 handily surpassed the Zacks Consensus Estimate of $2.29. Also, the bottom line was up from the prior-year quarter’s $2.72 per share.
Raymond James’ (RJF - Free Report) first-quarter fiscal 2021 (ended Dec 31) adjusted earnings of $2.24 per share comfortably surpassed the Zacks Consensus Estimate of $1.71. Also, on a year-over-year basis, the bottom line increased 19%.
BGC Partners, Inc. is scheduled to announce quarterly numbers of Feb 24.
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Moelis & Company (MC - Free Report) recorded fourth-quarter 2020 adjusted earnings per share of $1.99, surpassing the Zacks Consensus Estimate of $1.33. Also, the bottom line improved from the year-ago quarter’s 38 cents per share.
Results were primarily driven by a substantial growth in revenues. Further, the company had a solid liquidity position during the quarter. However, rise in expenses was the undermining factor.
Net income (GAAP basis) was $155.6 million or $1.97 per share, significantly up from $27.2 million or 38 cents per share recorded in the prior-year quarter.
In 2020, adjusted earnings of $2.91 per share beat the consensus estimate of $2.25 and were up 48% year over year. Net income (GAAP basis) was $218.4 million or $2.95 per share, up from $135.7 million or $1.89 per share in 2019.
Revenues & Expenses Rise
Total revenues in the reported quarter jumped 89% year over year to $422 million. The rise was primarily driven by high level of merger and acquisitions (M&A) activity and continued strength in capital markets and restructuring activity. Further, the top line outpaced the Zacks Consensus Estimate of $306.9 million.
In 2020, total revenues grew 26% to $943.3 million. Also, it beat the consensus estimate of $831.8 million.
Total operating expenses (adjusted basis) were $215.1 million, up 7% year over year. Rise in compensation and benefits costs led to the increase.
Other expenses (adjusted basis) were $0.7 million, down 89%.
As of Dec 31, 2020, the company had cash and liquid investments of $375.1 million, with no debt or goodwill.
Dividend Hike
Moelis & Company declared a dividend of 55 cents per share, representing a hike of 44% from the prior payout. The dividend will be paid out on Mar 26 to shareholders on record as of Feb 22.
Share Repurchase Update
During 2020, the company repurchased 1.2 million shares for a total cost of $44.3 million.
Our View
Moelis & Company’s global expansion initiatives and solid M&A activities bode well for the future. The company's enhanced capital deployments reflect a strong balance sheet.
Currently, Moelis & Company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance & Earnings Date of Other Companies
Evercore’s (EVR - Free Report) fourth-quarter 2020 adjusted earnings per share of $5.67 handily surpassed the Zacks Consensus Estimate of $2.29. Also, the bottom line was up from the prior-year quarter’s $2.72 per share.
Raymond James’ (RJF - Free Report) first-quarter fiscal 2021 (ended Dec 31) adjusted earnings of $2.24 per share comfortably surpassed the Zacks Consensus Estimate of $1.71. Also, on a year-over-year basis, the bottom line increased 19%.
BGC Partners, Inc. is scheduled to announce quarterly numbers of Feb 24.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>
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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