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Lazard (LAZ) Q4 Earnings & Revenues Beat Estimates, Costs Up
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Lazard Ltd (LAZ - Free Report) reported fourth-quarter 2021 record adjusted earnings of $1.92 per share, which beat the Zacks Consensus Estimate of $1.45. The reported figure also reflects 16% year-over-year growth.
Higher revenues and growth in assets under management (AUM) favored the company. However, operating expenses witnessed a rise. Most likely due to this, shares of the company were down 0.4% following the earnings release.
Adjusted net income in the reported quarter was $217 million, up 13% year over year. On a GAAP basis, Lazard’s net income came in at $210 million or $1.86 per share compared with the $190 million or $1.64 recorded in the prior-year quarter.
In 2021, adjusted earnings of $5.04 per share beat the consensus estimate of $4.57 and increased 40% from 2020. Adjusted net income of $576 million was up 40% from 2020.
Revenues & Expenses Rise
In the fourth quarter, adjusted operating revenues totaled a record $967.95 million, up 14% year over year. This upside resulted from an increase in asset management, financial advisory and corporate revenues. The reported figure also outpaced the Zacks Consensus Estimate of $858.46 million.
In 2021, adjusted operating revenues increased 24% to $3.14 billion. The top line surpassed the consensus estimate of $3.03 billion.
Adjusted operating expenses were $678.41 million in the quarter, up 10.5% year over year. Higher compensation and benefits as well as non-compensation expense resulted in this rise.
Adjusted compensation and benefits expenses rose 10% on a year-over-year basis to $544.5 million. Adjusted non-compensation expenses for the quarter were $133.9 million, up 15% year over year.
The ratio of adjusted compensation expenses to operating revenues was 56.3%, down from the year-earlier quarter’s 58.6%. The ratio of non-compensation expenses to operating revenues was 13.8%, up from the year-ago quarter’s 13.7%.
Segment Performance
Financial Advisory: The segment’s adjusted revenues were $608.18 million, up 20% from the year-earlier quarter.
Asset Management: The segment’s adjusted revenues were $346.6 million, up 3% from the prior-year quarter.
Corporate: The segment generated $13.16 million adjusted revenues, up substantially from $3.99 million in the prior-year quarter.
Growing AUM
As of Dec 31, 2021, AUM was recorded at $273.7 billion, up 5.8% from the prior-year quarter. The quarter witnessed a market and foreign-exchange appreciation of $7.9 billion and net outflows of $6.7 billion.
Average AUM came in at $273.5 billion, up 11.4% year over year.
Balance Sheet Strong
Lazard’s cash and cash equivalents totaled $1.47 billion as of Dec 31, 2021, compared with $1.39 billion as of Dec 31, 2020. The company’s stockholders’ equity was $1.08 billion compared with $999.4 million as of Dec 31, 2020.
Steady Capital-Deployment Activity
In 2021, Lazard repurchased $406 million worth of shares and paid $196 million in dividends. Additional share repurchase of upto $300 million was authorized on Feb 2, valid till Dec 31, 2024. The total outstanding share repurchase authorization is $431 million.
Our Viewpoint
Lazard’s fourth-quarter performance was impressive. Although diverse footprint, steady capital-deployment activities and revenue growth position the company favorably for the long haul, elevated expenses pose a threat to its financials.
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2021 adjusted earnings of $10.42 per share outpaced the Zacks Consensus Estimate of $10.23. The figure reflects a rise of 2.4% from the year-ago quarter. Net income attributable to BlackRock (on a GAAP basis) was $1.64 billion, up 6.1% from the prior-year quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in AUM balance.
Invesco’s (IVZ - Free Report) fourth-quarter 2021 adjusted earnings of 86 cents per share handily outpaced the Zacks Consensus Estimate of 76 cents. The bottom line grew 19.4% from the prior-year quarter. On a GAAP basis, Invesco’s net income attributable to common shareholders was $426.8 million or 92 cents per share, up from $211.1 million or 46 cents per share a year ago.
IVZ’s results reflected an improvement in revenues and solid growth in AUM balance. However, a rise in operating expenses was a headwind.
Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2021 adjusted operating earnings per share of $6.15 surpassed the Zacks Consensus Estimate of $5.77. The bottom line reflects a rise of 35.8% from the year-ago quarter. Ameriprise’s net income (GAAP basis) was $701 million or $5.96 per share, up from $177 million or $1.43 per share in the prior-year quarter.
AMP’s results were aided by growth in revenues, partly offset by higher expenses. Improvements in AUM and assets under administration balance were tailwinds.
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Lazard (LAZ) Q4 Earnings & Revenues Beat Estimates, Costs Up
Lazard Ltd (LAZ - Free Report) reported fourth-quarter 2021 record adjusted earnings of $1.92 per share, which beat the Zacks Consensus Estimate of $1.45. The reported figure also reflects 16% year-over-year growth.
Higher revenues and growth in assets under management (AUM) favored the company. However, operating expenses witnessed a rise. Most likely due to this, shares of the company were down 0.4% following the earnings release.
Adjusted net income in the reported quarter was $217 million, up 13% year over year. On a GAAP basis, Lazard’s net income came in at $210 million or $1.86 per share compared with the $190 million or $1.64 recorded in the prior-year quarter.
In 2021, adjusted earnings of $5.04 per share beat the consensus estimate of $4.57 and increased 40% from 2020. Adjusted net income of $576 million was up 40% from 2020.
Revenues & Expenses Rise
In the fourth quarter, adjusted operating revenues totaled a record $967.95 million, up 14% year over year. This upside resulted from an increase in asset management, financial advisory and corporate revenues. The reported figure also outpaced the Zacks Consensus Estimate of $858.46 million.
In 2021, adjusted operating revenues increased 24% to $3.14 billion. The top line surpassed the consensus estimate of $3.03 billion.
Adjusted operating expenses were $678.41 million in the quarter, up 10.5% year over year. Higher compensation and benefits as well as non-compensation expense resulted in this rise.
Adjusted compensation and benefits expenses rose 10% on a year-over-year basis to $544.5 million. Adjusted non-compensation expenses for the quarter were $133.9 million, up 15% year over year.
The ratio of adjusted compensation expenses to operating revenues was 56.3%, down from the year-earlier quarter’s 58.6%. The ratio of non-compensation expenses to operating revenues was 13.8%, up from the year-ago quarter’s 13.7%.
Segment Performance
Financial Advisory: The segment’s adjusted revenues were $608.18 million, up 20% from the year-earlier quarter.
Asset Management: The segment’s adjusted revenues were $346.6 million, up 3% from the prior-year quarter.
Corporate: The segment generated $13.16 million adjusted revenues, up substantially from $3.99 million in the prior-year quarter.
Growing AUM
As of Dec 31, 2021, AUM was recorded at $273.7 billion, up 5.8% from the prior-year quarter. The quarter witnessed a market and foreign-exchange appreciation of $7.9 billion and net outflows of $6.7 billion.
Average AUM came in at $273.5 billion, up 11.4% year over year.
Balance Sheet Strong
Lazard’s cash and cash equivalents totaled $1.47 billion as of Dec 31, 2021, compared with $1.39 billion as of Dec 31, 2020. The company’s stockholders’ equity was $1.08 billion compared with $999.4 million as of Dec 31, 2020.
Steady Capital-Deployment Activity
In 2021, Lazard repurchased $406 million worth of shares and paid $196 million in dividends. Additional share repurchase of upto $300 million was authorized on Feb 2, valid till Dec 31, 2024. The total outstanding share repurchase authorization is $431 million.
Our Viewpoint
Lazard’s fourth-quarter performance was impressive. Although diverse footprint, steady capital-deployment activities and revenue growth position the company favorably for the long haul, elevated expenses pose a threat to its financials.
Lazard Ltd Price, Consensus and EPS Surprise
Lazard Ltd price-consensus-eps-surprise-chart | Lazard Ltd Quote
Currently, Lazard 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 Investment Managers
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2021 adjusted earnings of $10.42 per share outpaced the Zacks Consensus Estimate of $10.23. The figure reflects a rise of 2.4% from the year-ago quarter. Net income attributable to BlackRock (on a GAAP basis) was $1.64 billion, up 6.1% from the prior-year quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in AUM balance.
Invesco’s (IVZ - Free Report) fourth-quarter 2021 adjusted earnings of 86 cents per share handily outpaced the Zacks Consensus Estimate of 76 cents. The bottom line grew 19.4% from the prior-year quarter. On a GAAP basis, Invesco’s net income attributable to common shareholders was $426.8 million or 92 cents per share, up from $211.1 million or 46 cents per share a year ago.
IVZ’s results reflected an improvement in revenues and solid growth in AUM balance. However, a rise in operating expenses was a headwind.
Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2021 adjusted operating earnings per share of $6.15 surpassed the Zacks Consensus Estimate of $5.77. The bottom line reflects a rise of 35.8% from the year-ago quarter. Ameriprise’s net income (GAAP basis) was $701 million or $5.96 per share, up from $177 million or $1.43 per share in the prior-year quarter.
AMP’s results were aided by growth in revenues, partly offset by higher expenses. Improvements in AUM and assets under administration balance were tailwinds.