A month has gone by since the last earnings report for Moelis (MC Quick QuoteMC - Free Report) . Shares have added about 2.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Moelis due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Moelis & Company before we dive into how investors and analysts have reacted as of late.

Moelis & Company Q1 Earnings Miss Estimates, Costs Rise Y/Y

Moelis & Company’s first-quarter 2026 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.

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.

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.

Outlook

The company expects 2026 non-compensation expenses to grow at a similar rate to 2025 due to the ongoing investments in technology, including AI, increased deal-related travel expenses and growth in headcount.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a flat trend in fresh estimates.

VGM Scores

Currently, Moelis has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Moelis has a Zacks Rank #5 (Strong Sell). We expect a below average 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, Morgan Stanley (MS Quick QuoteMS - Free Report) , a stock from the same industry, has gained 6.9%. The company reported its results for the quarter ended March 2026 more than a month ago.

Morgan Stanley reported revenues of $20.58 billion in the last reported quarter, representing a year-over-year change of +16%. EPS of $3.43 for the same period compares with $2.60 a year ago.

Morgan Stanley is expected to post earnings of $2.71 per share for the current quarter, representing a year-over-year change of +27.2%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.

Morgan Stanley has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.