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Moelis & Company's (MC) Q1 Earnings Top as Revenues Rise Y/Y
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Moelis & Company’s (MC - Free Report) first-quarter 2024 adjusted earnings per share of 22 cents handily surpassed the Zacks Consensus Estimate of 11 cents. The bottom line compared favorably with 5 cents earned in the prior-year quarter.
Results benefited from a rise in revenues and other income. Also, the company had a solid liquidity position in the quarter. However, an increase in expenses acted as an undermining factor.
Net income (GAAP basis) was $17.5 million, up substantially from $3.6 million in the prior-year quarter.
Revenues Rise, Expenses Up
Total revenues (GAAP basis) grew 15% year over year to $217.5 million. This was driven by a rise in fees earned from restructuring and capital markets transactions. The top line, however, lagged the Zacks Consensus Estimate of $222.7 million.
Total operating expenses (GAAP basis) were $211.7 million, up 12%. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimates for total operating expenses were $223.8 million.
Other income (GAAP basis) was $4.2 million in the reported quarter, surging from $1.7 million in the prior-year quarter.
As of Mar 31, 2024, the company had cash and liquid investments of $124.9 million, with no debt or goodwill.
Our View
Moelis & Company’s global expansion initiatives and diverse operations across sectors and industries bode well. However, heightened geopolitical and macroeconomic uncertainties will continue to adversely impact the company’s financials.
Moelis & Company Price, Consensus and EPS Surprise
Morgan Stanley’s (MS - Free Report) first-quarter 2024 earnings of $2.02 per share handily outpaced the Zacks Consensus Estimate of $1.69. The bottom line compared favorably with $1.70 per share reported in the prior-year quarter.
Solid capital markets performance, including investment banking (IB), majorly supported Morgan Stanley’s results. Also, the company’s wealth management business performance was robust. However, lower net interest income and a rise in expenses were headwinds.
The Goldman Sachs Group, Inc.’s (GS - Free Report) first-quarter 2024 earnings per share of $11.58 surpassed the Zacks Consensus Estimate of $8.54. Also, the bottom line increased 16.3% from the year-earlier quarter.
Goldman’s results have benefited from the strength in the consumer banking and IB business, along with improved fee income. However, increased expenses and provisions were the undermining factors.
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Moelis & Company's (MC) Q1 Earnings Top as Revenues Rise Y/Y
Moelis & Company’s (MC - Free Report) first-quarter 2024 adjusted earnings per share of 22 cents handily surpassed the Zacks Consensus Estimate of 11 cents. The bottom line compared favorably with 5 cents earned in the prior-year quarter.
Results benefited from a rise in revenues and other income. Also, the company had a solid liquidity position in the quarter. However, an increase in expenses acted as an undermining factor.
Net income (GAAP basis) was $17.5 million, up substantially from $3.6 million in the prior-year quarter.
Revenues Rise, Expenses Up
Total revenues (GAAP basis) grew 15% year over year to $217.5 million. This was driven by a rise in fees earned from restructuring and capital markets transactions. The top line, however, lagged the Zacks Consensus Estimate of $222.7 million.
Total operating expenses (GAAP basis) were $211.7 million, up 12%. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimates for total operating expenses were $223.8 million.
Other income (GAAP basis) was $4.2 million in the reported quarter, surging from $1.7 million in the prior-year quarter.
As of Mar 31, 2024, the company had cash and liquid investments of $124.9 million, with no debt or goodwill.
Our View
Moelis & Company’s global expansion initiatives and diverse operations across sectors and industries bode well. However, heightened geopolitical and macroeconomic uncertainties will continue to adversely impact the company’s financials.
Moelis & Company Price, Consensus and EPS Surprise
Moelis & Company price-consensus-eps-surprise-chart | Moelis & Company Quote
Currently, Moelis & Company has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Investment Banks
Morgan Stanley’s (MS - Free Report) first-quarter 2024 earnings of $2.02 per share handily outpaced the Zacks Consensus Estimate of $1.69. The bottom line compared favorably with $1.70 per share reported in the prior-year quarter.
Solid capital markets performance, including investment banking (IB), majorly supported Morgan Stanley’s results. Also, the company’s wealth management business performance was robust. However, lower net interest income and a rise in expenses were headwinds.
The Goldman Sachs Group, Inc.’s (GS - Free Report) first-quarter 2024 earnings per share of $11.58 surpassed the Zacks Consensus Estimate of $8.54. Also, the bottom line increased 16.3% from the year-earlier quarter.
Goldman’s results have benefited from the strength in the consumer banking and IB business, along with improved fee income. However, increased expenses and provisions were the undermining factors.