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Moelis & Company’s (MC - Free Report) second-quarter 2022 adjusted earnings per share of 57 cents surpassed the Zacks Consensus Estimate of 41 cents. The bottom line, however, reflects a decline of 52.1% from the prior-year quarter.
Results largely benefited from a decrease in expenses. Also, the company had a solid liquidity position in the reported quarter. However, a fall in revenues was the undermining factor.
Net income (GAAP basis) was $43.9 million or 56 cents per share, down from $93.2 million or $1.17 per share recorded in the prior-year quarter.
Revenues & Expenses Decline
Total revenues (GAAP basis) decreased 32.8% year over year to $242.5 million. The top line beat the Zacks Consensus Estimate of $194.5 million.
Total operating expenses (adjusted basis) were $180.3 million, down 25.7% year over year. The fall was due to a decline in compensation and benefits costs.
Other expenses (GAAP basis) were $3 million in the reported quarter against other income of $2.8 million in the prior-year quarter.
As of Jun 30, 2022, the company had cash and liquid investments of $276.6 million, with no debt or goodwill.
Share Repurchase Update
During the reported quarter, the company repurchased 0.8 million shares for $34.9 million.
From the start of the year through Jul 26, MC repurchased 3 million shares.
Our View
Elevated expenses resulting from the continuous hiring spree and rising inflation will likely hurt Moelis & Company’s bottom-line growth to some extent. Moreover, heightened geopolitical and macroeconomic uncertainties are expected to adversely impact the company’s financials in the near term. Yet, global expansion initiatives, along with diverse operations across sectors and industries, bode well.
Moelis & Company Price, Consensus and EPS Surprise
Performance & Earnings Release Date of Other Investment Banks
Raymond James’ (RJF - Free Report) third-quarter fiscal 2022 (ended Jun 30) adjusted earnings of $1.61 per share lagged the Zacks Consensus Estimate by a penny. The bottom line was down 14% from the prior-year quarter.
RJF’s results were adversely impacted by a rise in expenses and dismal investment banking performance due to heightened geopolitical and macroeconomic ambiguities. RJF recorded bank loan provision for credit losses during the quarter, which indicates “a weaker macroeconomic outlook.” Yet, higher interest income and a rise in loan demand acted as tailwinds.
Piper Sandler Companies (PIPR - Free Report) is scheduled to announce quarterly numbers on Jul 29.
Over the past 30 days, the Zacks Consensus Estimate for Piper Sandler’s quarterly earnings has been unchanged at $2.85, suggesting a 46.9% decrease from the prior-year reported number.
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Moelis & Company (MC) Q2 Earnings Beat, Revenues & Costs Dip
Moelis & Company’s (MC - Free Report) second-quarter 2022 adjusted earnings per share of 57 cents surpassed the Zacks Consensus Estimate of 41 cents. The bottom line, however, reflects a decline of 52.1% from the prior-year quarter.
Results largely benefited from a decrease in expenses. Also, the company had a solid liquidity position in the reported quarter. However, a fall in revenues was the undermining factor.
Net income (GAAP basis) was $43.9 million or 56 cents per share, down from $93.2 million or $1.17 per share recorded in the prior-year quarter.
Revenues & Expenses Decline
Total revenues (GAAP basis) decreased 32.8% year over year to $242.5 million. The top line beat the Zacks Consensus Estimate of $194.5 million.
Total operating expenses (adjusted basis) were $180.3 million, down 25.7% year over year. The fall was due to a decline in compensation and benefits costs.
Other expenses (GAAP basis) were $3 million in the reported quarter against other income of $2.8 million in the prior-year quarter.
As of Jun 30, 2022, the company had cash and liquid investments of $276.6 million, with no debt or goodwill.
Share Repurchase Update
During the reported quarter, the company repurchased 0.8 million shares for $34.9 million.
From the start of the year through Jul 26, MC repurchased 3 million shares.
Our View
Elevated expenses resulting from the continuous hiring spree and rising inflation will likely hurt Moelis & Company’s bottom-line growth to some extent. Moreover, heightened geopolitical and macroeconomic uncertainties are expected to adversely impact the company’s financials in the near term. Yet, global expansion initiatives, along with diverse operations across sectors and industries, bode well.
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 Release Date of Other Investment Banks
Raymond James’ (RJF - Free Report) third-quarter fiscal 2022 (ended Jun 30) adjusted earnings of $1.61 per share lagged the Zacks Consensus Estimate by a penny. The bottom line was down 14% from the prior-year quarter.
RJF’s results were adversely impacted by a rise in expenses and dismal investment banking performance due to heightened geopolitical and macroeconomic ambiguities. RJF recorded bank loan provision for credit losses during the quarter, which indicates “a weaker macroeconomic outlook.” Yet, higher interest income and a rise in loan demand acted as tailwinds.
Piper Sandler Companies (PIPR - Free Report) is scheduled to announce quarterly numbers on Jul 29.
Over the past 30 days, the Zacks Consensus Estimate for Piper Sandler’s quarterly earnings has been unchanged at $2.85, suggesting a 46.9% decrease from the prior-year reported number.