We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Evercore (EVR) Up 14.2% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Evercore (EVR - Free Report) . Shares have added about 14.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Evercore due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Evercore Q3 Earnings Miss on Lower Revenues
Evercore’s quarterly adjusted earnings per share of $1.30 missed the Zacks Consensus Estimate of $1.31 by a penny. Also, the bottom line was down from the prior-year quarter’s $2.20.
A decline in net revenues of the Investment Banking & Equities segment hampered the overall top line. Amid a challenging environment, the company saw a decline in AUM. However, a rise in Investment Management segment’s revenues offered some support.
Net income available to common shareholders (GAAP basis) was $52.1 million, down from $82.4 million reported a year ago.
Revenues Decline & Expenses Rise
In third-quarter 2023, net revenues of $574.4 million surpassed the Zacks Consensus Estimate of $565.9 million. However, the top line decreased 1.2% year over year. A decline in advisory fees as well as commissions and related revenues mainly led to the fall.
Total expenses increased 10.5% to $493.4 million. This was mainly due to a rise in almost all the components of total expenses, except professional fees, and depreciation and amortization costs.
Adjusted compensation ratio was 68%, up from the prior-year quarter’s 61%.
Adjusted operating margin was 14.4%, down from the prior-year quarter’s 23.4%.
Quarterly Segmental Performance (Adjusted Basis)
Investment Banking & Equities: Net revenues declined 1.5% year over year to $557 million. Also, operating income decreased 41% to $77.6 million.
Investment Management: Net revenues were $19.1 million, up 5.9% from the prior-year quarter’s reading. Operating income was $5.1 million, up nearly 1% from the year-ago quarter. AUM was $11.27 billion as of Sep 30, 2023, up 12.9% from the year-earlier quarter.
Balance Sheet Position
As of Sep 30, 2023, cash and cash equivalents were $492.6 million, and investment securities and certificates of deposit were $1.1 billion. Moreover, current assets exceeded current liabilities by $1.6 billion as of the same date.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -19.69% due to these changes.
VGM Scores
At this time, Evercore has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Evercore has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Evercore is part of the Zacks Financial - Investment Bank industry. Over the past month, Interactive Brokers Group, Inc. (IBKR - Free Report) , a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended September 2023 more than a month ago.
Interactive Brokers Group, Inc. reported revenues of $1.15 billion in the last reported quarter, representing a year-over-year change of +44.9%. EPS of $1.55 for the same period compares with $1.08 a year ago.
Interactive Brokers Group, Inc. is expected to post earnings of $1.49 per share for the current quarter, representing a year-over-year change of +14.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.7%.
Interactive Brokers Group, Inc. has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Evercore (EVR) Up 14.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Evercore (EVR - Free Report) . Shares have added about 14.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Evercore due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Evercore Q3 Earnings Miss on Lower Revenues
Evercore’s quarterly adjusted earnings per share of $1.30 missed the Zacks Consensus Estimate of $1.31 by a penny. Also, the bottom line was down from the prior-year quarter’s $2.20.
A decline in net revenues of the Investment Banking & Equities segment hampered the overall top line. Amid a challenging environment, the company saw a decline in AUM. However, a rise in Investment Management segment’s revenues offered some support.
Net income available to common shareholders (GAAP basis) was $52.1 million, down from $82.4 million reported a year ago.
Revenues Decline & Expenses Rise
In third-quarter 2023, net revenues of $574.4 million surpassed the Zacks Consensus Estimate of $565.9 million. However, the top line decreased 1.2% year over year. A decline in advisory fees as well as commissions and related revenues mainly led to the fall.
Total expenses increased 10.5% to $493.4 million. This was mainly due to a rise in almost all the components of total expenses, except professional fees, and depreciation and amortization costs.
Adjusted compensation ratio was 68%, up from the prior-year quarter’s 61%.
Adjusted operating margin was 14.4%, down from the prior-year quarter’s 23.4%.
Quarterly Segmental Performance (Adjusted Basis)
Investment Banking & Equities: Net revenues declined 1.5% year over year to $557 million. Also, operating income decreased 41% to $77.6 million.
Investment Management: Net revenues were $19.1 million, up 5.9% from the prior-year quarter’s reading. Operating income was $5.1 million, up nearly 1% from the year-ago quarter. AUM was $11.27 billion as of Sep 30, 2023, up 12.9% from the year-earlier quarter.
Balance Sheet Position
As of Sep 30, 2023, cash and cash equivalents were $492.6 million, and investment securities and certificates of deposit were $1.1 billion. Moreover, current assets exceeded current liabilities by $1.6 billion as of the same date.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -19.69% due to these changes.
VGM Scores
At this time, Evercore has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Evercore has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Evercore is part of the Zacks Financial - Investment Bank industry. Over the past month, Interactive Brokers Group, Inc. (IBKR - Free Report) , a stock from the same industry, has gained 0.6%. The company reported its results for the quarter ended September 2023 more than a month ago.
Interactive Brokers Group, Inc. reported revenues of $1.15 billion in the last reported quarter, representing a year-over-year change of +44.9%. EPS of $1.55 for the same period compares with $1.08 a year ago.
Interactive Brokers Group, Inc. is expected to post earnings of $1.49 per share for the current quarter, representing a year-over-year change of +14.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.7%.
Interactive Brokers Group, Inc. has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.