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Evercore (EVR) Q1 Earnings Top Estimates on Fee Income Growth
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Evercore (EVR - Free Report) reported first-quarter 2021 adjusted earnings per share of $3.29, which handily surpassed the Zacks Consensus Estimate of $2.63. Also, the bottom line was up from the prior-year quarter’s $1.21 per share.
Impressive revenue growth with support from higher underwriting and advisory fees supported the results. Also, rise in assets under management (AUM) was a tailwind. In addition, liquidity position was consistently strong. However, escalating expenses posed a major drag.
After considering certain one-time items, on a GAAP basis, net income available to common shareholders was $144.4 million or $3.25 per share compared with the $31.2 million or 74 cents per share reported in the year-ago quarter.
Revenues Climb, Expenses Increase
Net revenues increased 55.1% year over year to $662.3 million in the reported quarter. Jump in underwriting fees and advisory fees led to rise. The figure surpassed the Zacks Consensus Estimate of $541.4 million. On an adjusted basis, net revenues were $669.9 million, up 54%.
Total expenses flared up 23.9% to $468.1 million from the prior-year quarter. This upswing mainly stemmed from rise in employee compensation and benefits, along with professional expenses, partly offset by lower travel and related costs.
Adjusted compensation ratio was 59%, down from the year-earlier quarter’s 62%.
Adjusted operating margin came in at 30.1% compared with the prior-year quarter’s 19%.
Quarterly Segment Performance (Adjusted)
Investment Banking: Net revenues increased 56% year over year to $652 million. Also, operating income rose considerably to $195.5 million. Advisory client transactions were 248,000, up 12%. Notably, underwriting revenues of $79.3 million in the quarter more than doubled from the prior-year period.
Investment Management: Net revenues were $17.9 million, up 12% from the prior-year quarter. Operating income was $6.3 million, up from $3.3 million in year-ago quarter. Additionally, AUM of $10.6 million was reported in the first quarter, up 11%.
Balance-Sheet Position
As of Mar 31, 2021, cash and cash equivalents were $410.8 million and marketable and investment securities totaled $873.1 million. Moreover, current assets exceeded current liabilities by $1.2 billion as of the same date.
Capital Deployment Activities
The company returned $275.3 million to shareholders during the quarter through dividends and repurchases of 1.9 million shares at an average price of $121.03.
Our Viewpoint
Evercore displayed impressive performance during the first quarter. Its top-line strength reflects earnings stability. Apart from this, the company’s strategic initiatives to bolster its investment banking segment bode well. Though escalating expenses are a concern, it is well poised to undertake any opportunistic expansion given its sound liquidity position.
Artisan Partners Asset Management (APAM - Free Report) first-quarter 2021 adjusted earnings came in at $1.13 per share, surpassing the Zacks Consensus Estimate of $1.10. Also, the bottom line was 71% higher than the year-ago quarter figure.
Invesco’s (IVZ - Free Report) first-quarter 2021 adjusted earnings of 68 cents per share surpassed the Zacks Consensus Estimate of 62 cents. Also, the bottom line grew 100% from the prior-year quarter.
Ameriprise Financial’s (AMP - Free Report) first-quarter 2021 adjusted operating earnings per share of $5.43 handily surpassed the Zacks Consensus Estimate of $4.73. Moreover, the bottom line came in 27% higher than the year-ago quarter.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Evercore (EVR) Q1 Earnings Top Estimates on Fee Income Growth
Evercore (EVR - Free Report) reported first-quarter 2021 adjusted earnings per share of $3.29, which handily surpassed the Zacks Consensus Estimate of $2.63. Also, the bottom line was up from the prior-year quarter’s $1.21 per share.
Impressive revenue growth with support from higher underwriting and advisory fees supported the results. Also, rise in assets under management (AUM) was a tailwind. In addition, liquidity position was consistently strong. However, escalating expenses posed a major drag.
After considering certain one-time items, on a GAAP basis, net income available to common shareholders was $144.4 million or $3.25 per share compared with the $31.2 million or 74 cents per share reported in the year-ago quarter.
Revenues Climb, Expenses Increase
Net revenues increased 55.1% year over year to $662.3 million in the reported quarter. Jump in underwriting fees and advisory fees led to rise. The figure surpassed the Zacks Consensus Estimate of $541.4 million. On an adjusted basis, net revenues were $669.9 million, up 54%.
Total expenses flared up 23.9% to $468.1 million from the prior-year quarter. This upswing mainly stemmed from rise in employee compensation and benefits, along with professional expenses, partly offset by lower travel and related costs.
Adjusted compensation ratio was 59%, down from the year-earlier quarter’s 62%.
Adjusted operating margin came in at 30.1% compared with the prior-year quarter’s 19%.
Quarterly Segment Performance (Adjusted)
Investment Banking: Net revenues increased 56% year over year to $652 million. Also, operating income rose considerably to $195.5 million. Advisory client transactions were 248,000, up 12%. Notably, underwriting revenues of $79.3 million in the quarter more than doubled from the prior-year period.
Investment Management: Net revenues were $17.9 million, up 12% from the prior-year quarter. Operating income was $6.3 million, up from $3.3 million in year-ago quarter. Additionally, AUM of $10.6 million was reported in the first quarter, up 11%.
Balance-Sheet Position
As of Mar 31, 2021, cash and cash equivalents were $410.8 million and marketable and investment securities totaled $873.1 million. Moreover, current assets exceeded current liabilities by $1.2 billion as of the same date.
Capital Deployment Activities
The company returned $275.3 million to shareholders during the quarter through dividends and repurchases of 1.9 million shares at an average price of $121.03.
Our Viewpoint
Evercore displayed impressive performance during the first quarter. Its top-line strength reflects earnings stability. Apart from this, the company’s strategic initiatives to bolster its investment banking segment bode well. Though escalating expenses are a concern, it is well poised to undertake any opportunistic expansion given its sound liquidity position.
Evercore Inc Price, Consensus and EPS Surprise
Evercore Inc price-consensus-eps-surprise-chart | Evercore Inc Quote
Currently, Evercore has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
Artisan Partners Asset Management (APAM - Free Report) first-quarter 2021 adjusted earnings came in at $1.13 per share, surpassing the Zacks Consensus Estimate of $1.10. Also, the bottom line was 71% higher than the year-ago quarter figure.
Invesco’s (IVZ - Free Report) first-quarter 2021 adjusted earnings of 68 cents per share surpassed the Zacks Consensus Estimate of 62 cents. Also, the bottom line grew 100% from the prior-year quarter.
Ameriprise Financial’s (AMP - Free Report) first-quarter 2021 adjusted operating earnings per share of $5.43 handily surpassed the Zacks Consensus Estimate of $4.73. Moreover, the bottom line came in 27% higher than the year-ago quarter.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>