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Moelis & Company (MC) Beats on Q2 Earnings, Hikes Dividend

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Moelis & Company (MC - Free Report) recorded second-quarter 2021 adjusted earnings per share of $1.19, surpassing the Zacks Consensus Estimate of 82 cents. In the prior-year quarter, the company recorded a loss per share of 11 cents.

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 $93.2 million or $1.17 per share against a net loss of $9 million or 10 cents per share recorded in the prior-year quarter.

Revenues Improve Significantly, Expenses Rise

Total revenues jumped significantly year over year from $159.9 million to $360.9 million. The top line outpaced the Zacks Consensus Estimate of $268 million.

Total operating expenses (adjusted basis) were $242.7 million, up 37% year over year. The rise was due to an increase in both compensation and benefits costs, and non-compensation costs.

Other income was $2.8 million against other expenses of $3.3 million recorded in the prior-year quarter.

As of Jun 30, 2021, the company had cash and liquid investments of $280.7 million, with no debt or goodwill.

Capital Deployment Update

In the reported quarter, the company repurchased 0.4 million shares for $21.7 million. Its board of directors has authorized an additional $100 million worth of repurchase authorization.

Additionally, the company announced a hike in quarterly dividend to 60 cents per share. The dividend will be paid out on Sep 17 to shareholders of record as of Aug 2.

Our View

Moelis & Company’s global expansion initiatives along with diverse operations across sectors and industries 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

Raymond James Financial (RJF - Free Report) is scheduled to announce the June-end quarter’s results on Jul 28. Main Street Capital Corporation (MAIN - Free Report) and FS KKR Capital Corp. (FSK - Free Report) are scheduled to announce quarterly results on Aug 5 and Aug 9, respectively.