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Moelis & Company Q1 Earnings Miss Estimates, Stock Down
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Key Takeaways
MC's Q1 adjusted EPS of 50 cents missed estimates and fell 21.9% year over year.
Moelis & Company's revenues rose 4.3% to $319.8M, but expenses climbed 3.6% on higher costs.
MC reported lower other income and repurchased 1.9M shares during the quarter.
Shares of Moelis & Company (MC - Free Report) lost 1.9% during after-market trading following the announcement of lower-than-expected first-quarter 2026 results. Adjusted earnings of 50 cents per share missed the Zacks Consensus Estimate of 59 cents. The bottom line declined 21.9% from the prior-year quarter.
Results were hurt by an increase in expenses and lower other income. These were partially offset by a rise in revenues. Also, the company had a solid liquidity position in the quarter.
Net income (GAAP basis) was $38.4 million compared with $50.3 million in the prior-year quarter.
MC’s Revenues Improve, Expenses Rise
Total revenues (GAAP basis) in the quarter grew 4.3% year over year to $319.8 million. However, the top line lagged the Zacks Consensus Estimate of $336.1 million.
Total quarterly operating expenses (GAAP basis) were $279.3 million, up 3.6% year over year. The rise was due to an increase in occupancy costs, communication, technology and information services expenses, travel and related expenses, depreciation and amortization charges and other expenses. Our estimate for total operating expenses was $271.4 million.
Other income (GAAP basis) was $5.7 million, down 7.8% from the prior-year quarter. We projected the metric to be $8.6 million.
As of March 31, 2026, the company had cash and liquid investments of $353.7 million, with no debt.
MC’s Share Repurchase Update
In the reported quarter, the company repurchased 1.9 million shares for $117.3 million. This includes 1.0 million shares to settle tax liabilities and a quarterly record of 0.9 million shares on the open market.
Our View on Moelis & Company
MC’s global expansion initiatives, solid capital markets performance and diverse operations across sectors and industries bode well for the future. However, declining other income and rising expenses are expected to hurt bottom-line growth.
Moody's Corporation Price, Consensus and EPS Surprise
Morgan Stanley’s (MS - Free Report) first-quarter 2026 earnings were $3.43 per share, which beat the Zacks Consensus Estimate of $3.06. The bottom line jumped 32% from the prior-year quarter.
Morgan Stanley’s results benefited from robust client engagement, and strength in investment banking (IB) and trading activities, as well as growth in net interest income.
The Goldman Sachs Group, Inc.’s (GS - Free Report) first-quarter 2026 earnings per share of $17.55 topped the Zacks Consensus Estimate by 7.4%. The metric also rose 24.3% from $14.12 a year ago.
Driven by the volatile market, Goldman posted record net revenues in Equities, while its fixed income, currencies and commodities intermediation business revenues fell. A solid dealmaking activity led to robust growth in IB fees. Goldman’s Asset & Wealth Management division posted solid revenue growth. However, a rise in expenses and provision for credit losses were headwinds.
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Moelis & Company Q1 Earnings Miss Estimates, Stock Down
Key Takeaways
Shares of Moelis & Company (MC - Free Report) lost 1.9% during after-market trading following the announcement of lower-than-expected first-quarter 2026 results. Adjusted earnings of 50 cents per share missed the Zacks Consensus Estimate of 59 cents. The bottom line declined 21.9% from the prior-year quarter.
Results were hurt by an increase in expenses and lower other income. These were partially offset by a rise in revenues. Also, the company had a solid liquidity position in the quarter.
Net income (GAAP basis) was $38.4 million compared with $50.3 million in the prior-year quarter.
MC’s Revenues Improve, Expenses Rise
Total revenues (GAAP basis) in the quarter grew 4.3% year over year to $319.8 million. However, the top line lagged the Zacks Consensus Estimate of $336.1 million.
Total quarterly operating expenses (GAAP basis) were $279.3 million, up 3.6% year over year. The rise was due to an increase in occupancy costs, communication, technology and information services expenses, travel and related expenses, depreciation and amortization charges and other expenses. Our estimate for total operating expenses was $271.4 million.
Other income (GAAP basis) was $5.7 million, down 7.8% from the prior-year quarter. We projected the metric to be $8.6 million.
As of March 31, 2026, the company had cash and liquid investments of $353.7 million, with no debt.
MC’s Share Repurchase Update
In the reported quarter, the company repurchased 1.9 million shares for $117.3 million. This includes 1.0 million shares to settle tax liabilities and a quarterly record of 0.9 million shares on the open market.
Our View on Moelis & Company
MC’s global expansion initiatives, solid capital markets performance and diverse operations across sectors and industries bode well for the future. However, declining other income and rising expenses are expected to hurt bottom-line growth.
Moody's Corporation Price, Consensus and EPS Surprise
Moody's Corporation price-consensus-eps-surprise-chart | Moody's Corporation 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) first-quarter 2026 earnings were $3.43 per share, which beat the Zacks Consensus Estimate of $3.06. The bottom line jumped 32% from the prior-year quarter.
Morgan Stanley’s results benefited from robust client engagement, and strength in investment banking (IB) and trading activities, as well as growth in net interest income.
The Goldman Sachs Group, Inc.’s (GS - Free Report) first-quarter 2026 earnings per share of $17.55 topped the Zacks Consensus Estimate by 7.4%. The metric also rose 24.3% from $14.12 a year ago.
Driven by the volatile market, Goldman posted record net revenues in Equities, while its fixed income, currencies and commodities intermediation business revenues fell. A solid dealmaking activity led to robust growth in IB fees. Goldman’s Asset & Wealth Management division posted solid revenue growth. However, a rise in expenses and provision for credit losses were headwinds.