Shares of Evercore Inc. EVR gained 3.2% in response to the announcement of better-than-expected first-quarter 2025 results. Adjusted earnings per share of $3.49 surpassed the Zacks Consensus Estimate of $1.60. Also, the bottom line compared favorably with the prior-year quarter’s $2.13.  

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 was an undermining factor. 

Net income attributable to common shareholders (GAAP basis) was $146.2 billion, which surged 70.6% from the year-ago quarter.

EVR’s Revenues & Expenses Rise 

In the first quarter of 2025, adjusted net revenues of $699.9 million beat the Zacks Consensus Estimate by 19.3%. Further, the top line increased 19.2% year over year. 

Total expenses increased 17.5% year over year to $583.6 million. This was mainly due to a rise in all the components except depreciation and amortization expenses.  

The adjusted compensation ratio was 65.7%, down from 66% in the prior-year quarter. 

Adjusted operating margin was 16.6%, up from 15.4% in the prior-year quarter.

EVR’s Quarterly Segment Performance (GAAP Basis) 

Investment Banking & Equities: Net revenues increased 20.1% year over year to $674.5 million. This rise was primarily driven by an increase in advisory fees and commissions and related revenues. Also, operating income surged 35.3% year over year to $106.7 million. 

Investment Management: Net revenues were $20.3 million, up 6.3% from the prior-year quarter. Operating income was $4.5 million, down 14.8%. AUM was $13.7 million as of March 31, 2025, up 5.4% year over year.

EVR’s Balance Sheet Position Strong 

As of March 31, 2025, cash and cash equivalents were $553 million, and investment securities and certificates of deposit were $811.5 million. Moreover, current assets exceeded current liabilities by $1.4 billion as of the same date.

EVR’s Capital Distributions Activities 

On April 29, 2025, the company declared a quarterly dividend of 84 cents per share, marking an increase of 5% from the prior payout. The dividend will be paid out on June 13 to common stockholders of record as of May 30. 

In the reported quarter, Evercore repurchased 0.7 million shares at an average price of $227.45.

Our View on Evercore 

EVR’s revenue growth primarily highlighted the strong momentum of its advisory solutions and revenues. Given the company’s decent liquidity position, enhanced 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 #5 (Strong Sell).  

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Evercore’s Peers 

The Goldman Sachs Group, Inc.'s GS first-quarter 2025 adjusted earnings per share of $14.12 surpassed the Zacks Consensus Estimate of $12.71. This compares favorably with $11.58 in the year-ago quarter. (Find the latest earnings estimates and surprises on Earnings Calendar.) 

GS's results benefited from solid growth in the Global Banking & Markets division. A decline in provisions was another positive. Yet, the decline in IB business and a rise in expenses were concerning. 

Moelis & Company's MC adjusted earnings for the first quarter of 2025 were 64 cents per share, which surpassed the Zacks Consensus Estimate of 57 cents. The bottom line improved significantly from 22 cents per share reported in the prior-year quarter. 

Results benefited from a rise in revenues and other income. Also, MC had a solid liquidity position in the quarter. However, an increase in expenses was a headwind. 

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This article originally published on Zacks Investment Research (zacks.com).

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