It has been about a month since the last earnings report for Evercore (EVR Quick QuoteEVR - Free Report) . Shares have lost about 26.3% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Evercore due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Evercore Q4 Earnings & Revenues Beat Estimates, AUM Balance Rises

Evercore fourth-quarter 2024 adjusted earnings per share of $3.41 surpassed the Zacks Consensus Estimate of $2.90. Also, the bottom line compared favorably with the prior-year quarter’s $2.02.

Results benefited from an increase in revenues generated from the Investment Management, and Investment Banking & Equities segments.  An improvement in assets under management balance was another positive. However, the rise in expenses acted as a spoilsport.

Net income attributable to common shareholders (GAAP basis) was $1.40 billion, which surged 69.7% from the year-ago quarter.

For 2024, the company reported adjusted earnings per share of $9.42. The metric rose from the prior-year quarter’s adjusted reported earnings of $6.46 per share. Net income was $3.78 billion, which rose 48.1% from the year-ago quarter.

EVR’s Revenues & Expenses Rise

In the fourth quarter of 2024, total revenues of $980.5 million beat the Zacks Consensus Estimate by 12.8%. Further, the top line increased 25% year over year.

For full-year, total revenues were $3 billion, which rose 22.6% year over year.

Total expenses increased 14.4% year over year to $762.7 million. This was mainly due to a rise in all the components of total expenses.

The adjusted compensation ratio was 65.2%, down from the prior-year quarter’s 70.8%.

Adjusted operating margin was 22.2%, up from the prior-year quarter’s 15.7%.

EVR’s Quarterly Segmental Performance (GAAP Basis)

Investment Banking & Equities: Net revenues increased 24.5% year over year to $953.9 million. This rise was primarily due to an increase in all the components of net revenues. Also, operating income surged 85.2% to $208.1 million.

Investment Management: Net revenues were $21.4 million, up 19.2% from the prior-year quarter’s reported figure. Operating income was $4.5 million, down 16.3% year over year. AUM was $13.9 billion as of Dec. 31, 2024, up 13% year over year.

EVR’s Balance Sheet Position

As of Dec. 31, 2024, cash and cash equivalents were $873 million, and investment securities and certificates of deposit were $1.5 billion. Moreover, current assets exceeded current liabilities by $1.8 billion as of the same date.

EVR’s Capital Distributions Activities

In the reported quarter, Evercore repurchased 0.1 million shares at an average price of $264.91.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

The consensus estimate has shifted -6.35% due to these changes.

VGM Scores

Currently, Evercore has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. 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.