Investment bank Moelis' Q3 adjusted revenue beats estimates on higher fees

Reuters
Oct 30
Investment bank Moelis' Q3 adjusted revenue beats estimates on higher fees

Overview

  • Moelis Q3 adjusted revenue rises 34% yr/yr, beating analyst expectations

  • Adjusted EPS for Q3 beats estimates, reflecting strong operational performance

  • Company repurchased 0.2 mln shares for $14.5 mln, maintaining strong balance sheet

Outlook

  • Moelis & Company did not provide specific financial guidance for future quarters

Result Drivers

  • HIGHER FEES - Increase in average fees earned per completed transaction in M&A and Capital Markets drove revenue growth

  • GROWTH STRATEGY - Continued execution on growth strategy with new Managing Director hires in M&A, Capital Markets, and Metals & Mining

  • INCREASED EXPENSES - Higher compensation and benefits expenses due to increased headcount and higher bonus accruals

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$356.89 mln

Q3 Adjusted Revenue

Beat

$375.98 mln

$356.92 mln (7 Analysts)

Q3 Adjusted EPS

Beat

$0.68

$0.57 (9 Analysts)

Q3 EPS

$0.67

Q3 Adjusted Net Income

Beat

$58.87 mln

$44.39 mln (5 Analysts)

Q3 Net Income

$60.07 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the investment banking & brokerage services peer group is "buy."

  • Wall Street's median 12-month price target for Moelis & Co is $76.00, about 6.1% above its October 28 closing price of $71.33

  • The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nBw4NdhQha

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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