Moelis & Company (MC - Free Report) recorded second-quarter 2020 adjusted loss per share of 11 cents, narrower than the Zacks Consensus Estimate of 14 cents. It reported earnings per share of 56 cents in the prior-year quarter.
Results were primarily hurt by a rise in expenses. However, an increase in revenues and a solid liquidity position were tailwinds.
Net loss (GAAP basis) was $9 million or 10 cents per share against net income of $37.7 million or 54 cents recorded in the prior-year quarter.
Revenues Improve, Expenses Rise
Total revenues increased 4.2% year over year to $159.9 million. The rise reflected an increase in the average fees earned per completed M&A transaction as well as a rise in Capital Markets activity. The top line surpassed the Zacks Consensus Estimate of $138 million.
Total operating expenses (adjusted basis) were $177.1 million, up 53.1% year over year. Increase in compensation and benefits costs led to the rise.
Other expenses (GAAP basis) were $3.3 million against other income of $5 million recorded in the year-ago quarter.
As of Jun 30, 2020, the company had cash and liquid investments of $193.7 million, with no debt or goodwill.
During the quarter, Moelis & Company repurchased shares worth $0.8 million.
Continuously increasing expenses (as witnessed in the second quarter as well) are expected to hurt the company’s bottom line to an extent. As it expands operations into sectors and products, overall costs are expected to remain elevated.
Currently, Moelis & Company carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Charles Schwab’s (SCHW - Free Report) second-quarter 2020 adjusted earnings of 54 cents per share lagged the Zacks Consensus Estimate of 55 cents. Also, the bottom line decreased 19% from the prior-year quarter.
Interactive Brokers Group’s (IBKR - Free Report) second-quarter 2020 adjusted earnings per share of 57 cents surpassed the Zacks Consensus Estimate of 30 cents. The figure reflects no change from the prior-year quarter earnings.
E*TRADE Financial (ETFC - Free Report) came up with an earnings surprise of 17.3% in second-quarter 2020 on record daily average revenue trades. Earnings of 88 cents per share outpaced the Zacks Consensus Estimate of 75 cents. The reported figure, however, compared unfavorably with the prior-year quarter’s 90 cents.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>