Evercore Inc.’s EVR 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. 

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Results benefited from an increase in revenues generated from the Investment Management, and Investment Banking & Equities segments.  An improvement in assets under management (AUM) 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

On Feb. 4, 2025, the company declared a quarterly dividend of 80 cents per share. The dividend will be paid out on Mar. 14, 2025, to common stockholders of record as of Feb. 28.

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

Our View on Evercore

EVR’s revenue growth was primarily due to its efforts to boost its client base in advisory solutions. Given the company’s decent liquidity position, capital distribution activities seem sustainable. However, a rising expense base is likely to impede bottom-line growth in the near term.

Evercore Inc Price, Consensus and EPS Surprise

Evercore Inc price-consensus-eps-surprise-chart | Evercore Inc Quote

Currently, Evercore carries 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

Interactive Brokers Group IBKR fourth-quarter 2024 adjusted earnings per share of $2.03 beat the Zacks Consensus Estimate of $1.86. The bottom line indicates a jump of 33.6% from the prior-year quarter’s reported actuals.

Results were primarily aided by an increase in revenues. The company recorded growth in customer accounts in the quarter, which, along with a rise in daily average revenue trades, was another tailwind. However, higher expenses hurt the results to some extent.

LPL Financial's LPLA fourth-quarter 2024 adjusted earnings of $4.25 per share handily outpaced the Zacks Consensus Estimate of $3.92. The bottom line also reflected year-over-year growth of 21.1%.

Results benefited from robust revenue improvement, partly offset by higher expenses. LPLA recorded growth in brokerage and advisory assets, which acted as a tailwind.

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