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Why Is Moelis (MC) Down 5.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for Moelis (MC - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Moelis due for a breakout? 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 catalysts.
Moelis & Company Incurs Loss in Q4, Revenues Rise Y/Y
Moelis & Company incurred a fourth-quarter 2023 adjusted loss per share of 6 cents, which was narrower than the Zacks Consensus Estimate for a loss of 11 cents. The bottom line compared unfavorably with earnings of 33 cents in the prior-year quarter.
Results were adversely impacted by a surge in expenses. However, an improvement in revenues and a solid liquidity position were the positives.
Net loss (GAAP basis) was $6.5 million or 8 cents per share against a net income of $22.7 million or 28 cents per share in the prior-year quarter.
For 2023, adjusted loss of 20 cents per share was narrower than the consensus estimate of a loss of 24 cents. Last year, adjusted earnings were $2.22. Net loss (GAAP basis) was $27.5 million or 36 cents per share against a net income of $168.7 million or $2.14 per share in 2022.
Revenues Rise, Expenses Jump
Total revenues (GAAP basis) for the reported quarter grew 4% year over year to $214.9 million. This was driven by a rise in fees earned from restructuring and capital markets transactions. The top line also beat the Zacks Consensus Estimate of $194.7 million.
For 2023, total revenues (GAAP) were $854.7 million, down 13%. The top line, however, outpaced the Zacks Consensus Estimate of $838.2 million.
Total operating expenses (GAAP basis) were $224.2 million, jumping 26%. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimates for total operating expenses were $213.4 million.
Other income (GAAP basis) was $5.1 million in the reported quarter, surging 79% from the prior-year quarter.
As of Dec 31, 2023, the company had cash and liquid investments of $349.3 million, with no debt or goodwill.
Outlook
Management expects adjusted non-compensation expenses to be $45-$46 million range per quarter.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -9.76% due to these changes.
VGM Scores
At this time, Moelis has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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, Moelis 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
Moelis is part of the Zacks Financial - Investment Bank industry. Over the past month, LPL Financial Holdings Inc. (LPLA - Free Report) , a stock from the same industry, has gained 10.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
LPL Financial Holdings Inc. reported revenues of $2.64 billion in the last reported quarter, representing a year-over-year change of +13.3%. EPS of $3.51 for the same period compares with $4.21 a year ago.
LPL Financial Holdings Inc. is expected to post earnings of $3.80 per share for the current quarter, representing a year-over-year change of -15.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.9%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for LPL Financial Holdings Inc. Also, the stock has a VGM Score of D.
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Why Is Moelis (MC) Down 5.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Moelis (MC - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Moelis due for a breakout? 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 catalysts.
Moelis & Company Incurs Loss in Q4, Revenues Rise Y/Y
Moelis & Company incurred a fourth-quarter 2023 adjusted loss per share of 6 cents, which was narrower than the Zacks Consensus Estimate for a loss of 11 cents. The bottom line compared unfavorably with earnings of 33 cents in the prior-year quarter.
Results were adversely impacted by a surge in expenses. However, an improvement in revenues and a solid liquidity position were the positives.
Net loss (GAAP basis) was $6.5 million or 8 cents per share against a net income of $22.7 million or 28 cents per share in the prior-year quarter.
For 2023, adjusted loss of 20 cents per share was narrower than the consensus estimate of a loss of 24 cents. Last year, adjusted earnings were $2.22. Net loss (GAAP basis) was $27.5 million or 36 cents per share against a net income of $168.7 million or $2.14 per share in 2022.
Revenues Rise, Expenses Jump
Total revenues (GAAP basis) for the reported quarter grew 4% year over year to $214.9 million. This was driven by a rise in fees earned from restructuring and capital markets transactions. The top line also beat the Zacks Consensus Estimate of $194.7 million.
For 2023, total revenues (GAAP) were $854.7 million, down 13%. The top line, however, outpaced the Zacks Consensus Estimate of $838.2 million.
Total operating expenses (GAAP basis) were $224.2 million, jumping 26%. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimates for total operating expenses were $213.4 million.
Other income (GAAP basis) was $5.1 million in the reported quarter, surging 79% from the prior-year quarter.
As of Dec 31, 2023, the company had cash and liquid investments of $349.3 million, with no debt or goodwill.
Outlook
Management expects adjusted non-compensation expenses to be $45-$46 million range per quarter.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -9.76% due to these changes.
VGM Scores
At this time, Moelis has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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, Moelis 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
Moelis is part of the Zacks Financial - Investment Bank industry. Over the past month, LPL Financial Holdings Inc. (LPLA - Free Report) , a stock from the same industry, has gained 10.2%. The company reported its results for the quarter ended December 2023 more than a month ago.
LPL Financial Holdings Inc. reported revenues of $2.64 billion in the last reported quarter, representing a year-over-year change of +13.3%. EPS of $3.51 for the same period compares with $4.21 a year ago.
LPL Financial Holdings Inc. is expected to post earnings of $3.80 per share for the current quarter, representing a year-over-year change of -15.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.9%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for LPL Financial Holdings Inc. Also, the stock has a VGM Score of D.