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Moelis & Company (MC) Q1 Earnings Beat as Revenues Rise Y/Y

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Moelis & Company (MC - Free Report) recorded first-quarter 2021 adjusted earnings per share of $1.02, surpassing the Zacks Consensus Estimate of 97 cents. Also, the bottom line improved from the year-ago quarter’s 45 cents per share.

Results were driven by a substantial improvement in revenues. Moreover, the company had a solid liquidity position in the reported quarter. However, a rise in expenses was the undermining factor.

Net income (GAAP basis) was $75.8 million or $1.00 per share, significantly up from $30.1 million or 44 cents per share recorded in the prior-year quarter.

Revenues Improve, Expenses Rise

Total revenues jumped 72% year over year to $263.9 million. Further, the top line outpaced the Zacks Consensus Estimate of $238.4 million.

Total operating expenses (adjusted basis) were $191.4 million, up 48% year over year. The rise was primarily due to an increase in compensation and benefits costs.

Other income was $3.2 million against other expenses of $1.7 million recorded in the prior-year quarter.

As of Mar 31, 2021, the company had cash and liquid investments of $227.7 million, with no debt or goodwill.

Capital Deployment Update

In the reported quarter, the company repurchased 1.4 million shares for $74.2 million.

Moreover, concurrent with the earnings release, it announced a special dividend (in addition to the regular quarterly dividend) of $2.00 per share. The dividend will be paid out on Jun 18 to shareholders of record as of May 10.

Our View

Moelis & Company’s global expansion initiatives, and solid merger and acquisition activities bode well for the future. The company's enhanced capital deployments reflect a strong balance sheet.

Moelis & Company Price, Consensus and EPS Surprise

 

Moelis & Company Price, Consensus and EPS Surprise

Moelis & Company price-consensus-eps-surprise-chart | Moelis & Company Quote

Currently, Moelis & Company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Release Dates of Other Finance Stocks

Main Street Capital Corporation (MAIN - Free Report) and FS KKR Capital Corp. (FSK - Free Report) are scheduled to announce quarterly results on May 6 and May 10, respectively. Gladstone Investment Corporation (GAIN - Free Report) is scheduled to announce the March-end quarter’s results on May 11.

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