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Moelis & Company (MC) Q4 Earnings Miss, Expenses Rise Y/Y
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Moelis & Company’s (MC - Free Report) fourth-quarter 2021 adjusted earnings per share of $1.42 missed the Zacks Consensus Estimate of $1.48 per share. The bottom line reflects a decline of 28.6% from the prior-year quarter.
Results were primarily hurt by an increase in expenses. Nevertheless, marginally higher revenues provided some support. Also, the company had a solid liquidity position in the reported quarter.
Net income (GAAP basis) was $113.5 million or $1.41 per share, down from $155.6 million or $1.97 per share recorded in the prior-year quarter.
In 2021, adjusted earnings per share were $5.40, which missed the Zacks Consensus Estimate of $5.48 per share. The bottom line reflects a rise of 85.6% from the prior year. Net income (GAAP basis) was $423 million or $5.34 per share, up from $218.4 million or $2.95 per share recorded in 2020.
Revenues Improve Marginally, Expenses Rise
Total quarterly revenues increased nearly 1% year over year to $425 million. The top line missed the Zacks Consensus Estimate of $436.7 million.
In 2021, revenues were $1.54 billion, up 63% year over year. The figure lagged the Zacks Consensus Estimate of $1.57 billion.
Total quarterly operating expenses (adjusted basis) were $270.6 million, up 25.8% year over year. The rise was due to an increase in both compensation and benefits costs and non-compensation costs.
Other income (GAAP basis) was $4 million, down from $11 million recorded in the prior-year quarter.
As of Dec 31, 2021, the company had cash and liquid investments of $721.2 million, with no debt or goodwill.
Share Repurchase Update
In 2021, the company repurchased 1.9 million shares for $104.1 million.
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
Charles Schwab’s (SCHW - Free Report) fourth-quarter 2021 adjusted earnings of 86 cents per share missed the Zacks Consensus Estimate of 88 cents. The bottom line, however, grew 16% from the prior-year quarter.
Schwab’s results reflected solid client asset balances and a rise in new brokerage accounts. These were driven by solid client activity, which supported revenues in the quarter. A slight dip in operating expenses was a tailwind. However, fee waivers and lower interest rates were a drag for SCHW.
Interactive Brokers Group’s (IBKR - Free Report) fourth-quarter 2021 adjusted earnings per share of 83 cents surpassed the Zacks Consensus Estimate of 82 cents. The bottom line reflects growth of 20.3% from the prior-year quarter.
Interactive Brokers recorded a marginal rise in revenues in the quarter under review. An increase in daily average revenue trades further aided results. IBKR’s capital position also remained strong. However, higher expenses hurt results to some extent.
Morgan Stanley’s (MS - Free Report) fourth-quarter 2021 adjusted earnings of $2.08 per share easily outpaced the Zacks Consensus Estimate of $2.00. The bottom line reflects a rise of 8% from the year-ago quarter’s level.
Morgan Stanley’s trading business did not perform significantly well. However, the performance of the investment banking business was strong. Higher net interest income, mainly driven by a rise in total loan balance and a plunge in interest expenses, supported Morgan Stanley’s top line. Mounting operating expenses hurt MS’ results to some extent.
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Moelis & Company (MC) Q4 Earnings Miss, Expenses Rise Y/Y
Moelis & Company’s (MC - Free Report) fourth-quarter 2021 adjusted earnings per share of $1.42 missed the Zacks Consensus Estimate of $1.48 per share. The bottom line reflects a decline of 28.6% from the prior-year quarter.
Results were primarily hurt by an increase in expenses. Nevertheless, marginally higher revenues provided some support. Also, the company had a solid liquidity position in the reported quarter.
Net income (GAAP basis) was $113.5 million or $1.41 per share, down from $155.6 million or $1.97 per share recorded in the prior-year quarter.
In 2021, adjusted earnings per share were $5.40, which missed the Zacks Consensus Estimate of $5.48 per share. The bottom line reflects a rise of 85.6% from the prior year. Net income (GAAP basis) was $423 million or $5.34 per share, up from $218.4 million or $2.95 per share recorded in 2020.
Revenues Improve Marginally, Expenses Rise
Total quarterly revenues increased nearly 1% year over year to $425 million. The top line missed the Zacks Consensus Estimate of $436.7 million.
In 2021, revenues were $1.54 billion, up 63% year over year. The figure lagged the Zacks Consensus Estimate of $1.57 billion.
Total quarterly operating expenses (adjusted basis) were $270.6 million, up 25.8% year over year. The rise was due to an increase in both compensation and benefits costs and non-compensation costs.
Other income (GAAP basis) was $4 million, down from $11 million recorded in the prior-year quarter.
As of Dec 31, 2021, the company had cash and liquid investments of $721.2 million, with no debt or goodwill.
Share Repurchase Update
In 2021, the company repurchased 1.9 million shares for $104.1 million.
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-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.
Performance of Other Companies
Charles Schwab’s (SCHW - Free Report) fourth-quarter 2021 adjusted earnings of 86 cents per share missed the Zacks Consensus Estimate of 88 cents. The bottom line, however, grew 16% from the prior-year quarter.
Schwab’s results reflected solid client asset balances and a rise in new brokerage accounts. These were driven by solid client activity, which supported revenues in the quarter. A slight dip in operating expenses was a tailwind. However, fee waivers and lower interest rates were a drag for SCHW.
Interactive Brokers Group’s (IBKR - Free Report) fourth-quarter 2021 adjusted earnings per share of 83 cents surpassed the Zacks Consensus Estimate of 82 cents. The bottom line reflects growth of 20.3% from the prior-year quarter.
Interactive Brokers recorded a marginal rise in revenues in the quarter under review. An increase in daily average revenue trades further aided results. IBKR’s capital position also remained strong. However, higher expenses hurt results to some extent.
Morgan Stanley’s (MS - Free Report) fourth-quarter 2021 adjusted earnings of $2.08 per share easily outpaced the Zacks Consensus Estimate of $2.00. The bottom line reflects a rise of 8% from the year-ago quarter’s level.
Morgan Stanley’s trading business did not perform significantly well. However, the performance of the investment banking business was strong. Higher net interest income, mainly driven by a rise in total loan balance and a plunge in interest expenses, supported Morgan Stanley’s top line. Mounting operating expenses hurt MS’ results to some extent.