We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
MC Gains on Q4 Earnings Beat as Revenues Rise, Announces Buyback Plan
Read MoreHide Full Article
Key Takeaways
MC shares rose 3.7% after hours as Q4 adjusted EPS of $1.13 topped estimates.
Moelis & Company posted 11% y/y revenue growth, while operating expenses climbed 17%.
MC repurchased 0.7M shares in Q4 and approved a new $300M buyback authorization.
Shares of Moelis & Company (MC - Free Report) gained 3.7% in after-market trading following the release of its better-than-expected fourth-quarter 2025 results. Adjusted earnings of $1.13 per share hugely surpassed the Zacks Consensus Estimate of 76 cents. However, the bottom line declined 4% from 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 was a headwind.
Net income (GAAP basis) was $87.9 million compared with $89.4 million in the prior-year quarter.
For 2025, adjusted earnings of $2.99 per share surpassed the Zacks Consensus Estimate of $2.61. Also, the bottom line increased 64% from the previous year. Net income (GAAP basis) was $233 million compared with $136 million in 2024.
MC’s Revenues Improve, Expenses Rise
Total revenues (GAAP basis) in the quarter grew 11% year over year to $487.9 million. The Zacks Consensus Estimate for revenues was $428.6 million.
Full-year total revenues (GAAP basis) grew 27% year over year to $1.52 billion. The Zacks Consensus Estimate for revenues was $1.48 billion.
Total quarterly operating expenses (GAAP basis) were $359.9 million, which jumped 17% year over year. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimate for total operating expenses was $346.3 million.
Other income (GAAP basis) was $10 million in the reported quarter, up 65% from the prior-year quarter. We projected the metric to be $7.9 million.
As of Dec. 31, 2025, the company had cash and liquid investments of $848.8 million, with no debt or goodwill.
MC’s Share Repurchase Update
In the reported quarter, the company repurchased 0.7 million shares at an average price of $62.96 per share.
The company’s board of directors approved a share repurchase authorization of up to $300 million, with no expiration date. The prior plan had $1.5 million remaining.
Our View on Moelis & Company
MC’s global expansion initiatives, higher average fees earned, solid capital markets and diverse operations across sectors and industries bode well for the future. However, a hiring spree and rising revenue-related compensation are expected to hurt bottom-line growth.
Moelis & Company Price, Consensus and EPS Surprise
Morgan Stanley’s (MS - Free Report) fourth-quarter 2025 earnings of $2.68 per share easily outpaced the Zacks Consensus Estimate of $2.41. Also, the bottom line jumped 21% from the prior-year quarter.
Unlike its peers, Morgan Stanley’s investment banking business gained from a frenzy of deal-making activities and IPOs. Also, MS posted a decent trading performance. The performance of the company’s wealth management and investment management businesses was impressive, driven by a rise in client assets and assets under management. Its net interest income increased, given the improved lending activities. On the other hand, an increase in total non-interest expenses was the undermining factor.
The Goldman Sachs Group, Inc.’s (GS - Free Report) fourth-quarter 2025 earnings per share of $14.01 surpassed the Zacks Consensus Estimate of $11.77. This compared favorably with $11.95 per share in the year-ago quarter.
Goldman’s overall results benefited from solid revenue growth in the Global Banking & Markets and Asset & Wealth Management divisions. These gains were further aided by a sizable net benefit from credit loss provisions related to reserve releases. However, overall results were tempered by elevated operating expenses and a decline in net revenues stemming from markdowns tied to the transfer of the Apple Card loan portfolio.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MC Gains on Q4 Earnings Beat as Revenues Rise, Announces Buyback Plan
Key Takeaways
Shares of Moelis & Company (MC - Free Report) gained 3.7% in after-market trading following the release of its better-than-expected fourth-quarter 2025 results. Adjusted earnings of $1.13 per share hugely surpassed the Zacks Consensus Estimate of 76 cents. However, the bottom line declined 4% from 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 was a headwind.
Net income (GAAP basis) was $87.9 million compared with $89.4 million in the prior-year quarter.
For 2025, adjusted earnings of $2.99 per share surpassed the Zacks Consensus Estimate of $2.61. Also, the bottom line increased 64% from the previous year. Net income (GAAP basis) was $233 million compared with $136 million in 2024.
MC’s Revenues Improve, Expenses Rise
Total revenues (GAAP basis) in the quarter grew 11% year over year to $487.9 million. The Zacks Consensus Estimate for revenues was $428.6 million.
Full-year total revenues (GAAP basis) grew 27% year over year to $1.52 billion. The Zacks Consensus Estimate for revenues was $1.48 billion.
Total quarterly operating expenses (GAAP basis) were $359.9 million, which jumped 17% year over year. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimate for total operating expenses was $346.3 million.
Other income (GAAP basis) was $10 million in the reported quarter, up 65% from the prior-year quarter. We projected the metric to be $7.9 million.
As of Dec. 31, 2025, the company had cash and liquid investments of $848.8 million, with no debt or goodwill.
MC’s Share Repurchase Update
In the reported quarter, the company repurchased 0.7 million shares at an average price of $62.96 per share.
The company’s board of directors approved a share repurchase authorization of up to $300 million, with no expiration date. The prior plan had $1.5 million remaining.
Our View on Moelis & Company
MC’s global expansion initiatives, higher average fees earned, solid capital markets and diverse operations across sectors and industries bode well for the future. However, a hiring spree and rising revenue-related compensation are expected to hurt bottom-line growth.
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 MC’s Peers
Morgan Stanley’s (MS - Free Report) fourth-quarter 2025 earnings of $2.68 per share easily outpaced the Zacks Consensus Estimate of $2.41. Also, the bottom line jumped 21% from the prior-year quarter.
Unlike its peers, Morgan Stanley’s investment banking business gained from a frenzy of deal-making activities and IPOs. Also, MS posted a decent trading performance. The performance of the company’s wealth management and investment management businesses was impressive, driven by a rise in client assets and assets under management. Its net interest income increased, given the improved lending activities. On the other hand, an increase in total non-interest expenses was the undermining factor.
The Goldman Sachs Group, Inc.’s (GS - Free Report) fourth-quarter 2025 earnings per share of $14.01 surpassed the Zacks Consensus Estimate of $11.77. This compared favorably with $11.95 per share in the year-ago quarter.
Goldman’s overall results benefited from solid revenue growth in the Global Banking & Markets and Asset & Wealth Management divisions. These gains were further aided by a sizable net benefit from credit loss provisions related to reserve releases. However, overall results were tempered by elevated operating expenses and a decline in net revenues stemming from markdowns tied to the transfer of the Apple Card loan portfolio.