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Why Is Moelis (MC) Up 1.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Moelis (MC - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Moelis due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Moelis & Company Q3 Earnings Top Estimates, Revenues Decline
Moelis & Company recorded third-quarter 2020 adjusted earnings per share of 54 cents, comfortably surpassing the Zacks Consensus Estimate of 2 cents. However, the figure deteriorated from the year-ago reported figure of 76 cents per share.
Results were primarily hurt by a fall in revenues. However, a decrease in 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 54 cents per share recorded in the prior-year quarter.
Revenues & Expenses Decline
Total revenues decreased 10% year over year to $207.6 million. The fall can be primarily attributed to lesser 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. Decrease 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 637.5% due to these changes.
VGM Scores
Currently, Moelis has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Moelis has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Moelis (MC) Up 1.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Moelis (MC - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Moelis due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Moelis & Company Q3 Earnings Top Estimates, Revenues Decline
Moelis & Company recorded third-quarter 2020 adjusted earnings per share of 54 cents, comfortably surpassing the Zacks Consensus Estimate of 2 cents. However, the figure deteriorated from the year-ago reported figure of 76 cents per share.
Results were primarily hurt by a fall in revenues. However, a decrease in 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 54 cents per share recorded in the prior-year quarter.
Revenues & Expenses Decline
Total revenues decreased 10% year over year to $207.6 million. The fall can be primarily attributed to lesser 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. Decrease 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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 637.5% due to these changes.
VGM Scores
Currently, Moelis has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Moelis has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.