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Moelis & Company (MC) Q1 Earnings Beat, Expenses Rise Y/Y
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Moelis & Company’s (MC - Free Report) first-quarter 2022 adjusted earnings per share of 95 cents surpassed the Zacks Consensus Estimate of 74 cents. The bottom line, however, reflects a decline of 7% from the prior-year quarter.
Results largely benefited from higher revenues. Also, the company had a solid liquidity position in the reported quarter. However, a rise in expenses is an undermining factor.
Net income (GAAP basis) was $73.6 million or 94 cents per share, down from $75.8 million or $1.00 per share recorded in the prior-year quarter.
Revenues Improve, Expenses Rise
Total revenues (GAAP basis) increased 14% year over year to $302.1 million. The top line beat the Zacks Consensus Estimate of $251.5 million.
Total operating expenses (adjusted basis) were $212 million, up 11% year over year. The rise was due to an increase in both compensation and benefits costs and non-compensation costs.
Other expenses (GAAP basis) were $2.2 million in the reported quarter against other income of $3.2 million in the prior-year quarter.
As of Mar 31, 2022, the company had cash and liquid investments of $301.5 million, with no debt or goodwill.
Share Repurchase Update
During the reported quarter, the company repurchased 2 million shares for $97.9 million.
Following the end of the quarter through Apr 26, MC repurchased roughly 0.4 million additional shares for $16.5 million.
Our View
Moelis & Company’s global expansion initiatives, along with diverse operations across sectors and industries, bode well. The company's enhanced capital deployments reflect a strong balance sheet.
Yet, heightened geopolitical and macroeconomic uncertainties are expected to adversely impact the company’s financials in the near term.
Moelis & Company Price, Consensus and EPS Surprise
Performance & Earnings Dates of Other Investment Banks
Raymond James’ (RJF - Free Report) second-quarter fiscal 2022 (ended Mar 31) adjusted earnings of $1.55 per share lagged the Zacks Consensus Estimate of $1.62. The bottom line was also down 8% from the prior-year quarter.
Results were adversely impacted by a rise in expenses and disappointing investment banking performance. Also, RJF recorded bank loan provision for credit losses during the quarter. Yet, higher interest income and a rise in loan demand acted as tailwinds. Further, the performance of the Private Client Group and Asset Management segments was impressive.
Piper Sandler Companies (PIPR - Free Report) s scheduled to announce quarterly numbers on Apr 29.
Over the past 30 days, the Zacks Consensus Estimate for Piper Sandler’s quarterly earnings has been unchanged at $2.80, suggesting a 32.2% decrease from the prior-year reported number.
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Moelis & Company (MC) Q1 Earnings Beat, Expenses Rise Y/Y
Moelis & Company’s (MC - Free Report) first-quarter 2022 adjusted earnings per share of 95 cents surpassed the Zacks Consensus Estimate of 74 cents. The bottom line, however, reflects a decline of 7% from the prior-year quarter.
Results largely benefited from higher revenues. Also, the company had a solid liquidity position in the reported quarter. However, a rise in expenses is an undermining factor.
Net income (GAAP basis) was $73.6 million or 94 cents per share, down from $75.8 million or $1.00 per share recorded in the prior-year quarter.
Revenues Improve, Expenses Rise
Total revenues (GAAP basis) increased 14% year over year to $302.1 million. The top line beat the Zacks Consensus Estimate of $251.5 million.
Total operating expenses (adjusted basis) were $212 million, up 11% year over year. The rise was due to an increase in both compensation and benefits costs and non-compensation costs.
Other expenses (GAAP basis) were $2.2 million in the reported quarter against other income of $3.2 million in the prior-year quarter.
As of Mar 31, 2022, the company had cash and liquid investments of $301.5 million, with no debt or goodwill.
Share Repurchase Update
During the reported quarter, the company repurchased 2 million shares for $97.9 million.
Following the end of the quarter through Apr 26, MC repurchased roughly 0.4 million additional shares for $16.5 million.
Our View
Moelis & Company’s global expansion initiatives, along with diverse operations across sectors and industries, bode well. The company's enhanced capital deployments reflect a strong balance sheet.
Yet, heightened geopolitical and macroeconomic uncertainties are expected to adversely impact the company’s financials in the near term.
Moelis & Company Price, Consensus and EPS Surprise
Moelis & Company price-consensus-eps-surprise-chart | Moelis & Company Quote
Currently, Moelis & Company carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance & Earnings Dates of Other Investment Banks
Raymond James’ (RJF - Free Report) second-quarter fiscal 2022 (ended Mar 31) adjusted earnings of $1.55 per share lagged the Zacks Consensus Estimate of $1.62. The bottom line was also down 8% from the prior-year quarter.
Results were adversely impacted by a rise in expenses and disappointing investment banking performance. Also, RJF recorded bank loan provision for credit losses during the quarter. Yet, higher interest income and a rise in loan demand acted as tailwinds. Further, the performance of the Private Client Group and Asset Management segments was impressive.
Piper Sandler Companies (PIPR - Free Report) s scheduled to announce quarterly numbers on Apr 29.
Over the past 30 days, the Zacks Consensus Estimate for Piper Sandler’s quarterly earnings has been unchanged at $2.80, suggesting a 32.2% decrease from the prior-year reported number.