Core Viewpoint - Evercore (EVR) is anticipated to report a year-over-year decline in earnings due to lower revenues, with a consensus estimate of $1.60 per share, reflecting a decrease of 24.9% compared to the previous year [1][3]. Earnings Expectations - The expected revenues for the upcoming quarter are $586.82 million, which is a slight decrease of 0.1% from the same quarter last year [3]. - The consensus EPS estimate has been revised down by 34.25% over the last 30 days, indicating a significant reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Evercore is the same as the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11]. - Evercore currently holds a Zacks Rank of 5, suggesting a weak outlook for beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Evercore exceeded the expected earnings of $2.90 per share by delivering $3.41, resulting in a positive surprise of 17.59% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Investment Considerations - While an earnings beat can influence stock movement, other factors may also play a significant role in determining stock performance [14]. - The combination of a negative Earnings ESP and a low Zacks Rank makes it challenging to predict a positive earnings surprise for Evercore [11][16].

Group 1 - Evercore Inc. is recognized as one of the leading investment banks in the U.S., particularly noted for its strong presence in mergers and acquisitions (M&A) [1] - The company operates primarily through its Strategic and Capital Advisory segments, which focus on corporate strategy and capital markets [1]

Core Insights - Montrose Environmental Group, Inc. is committed to protecting air, water, and soil, and will participate in the Evercore 17th Annual Industrial Conference on March 4, 2025 [1] Company Overview - Montrose is a leading environmental solutions company that supports commercial and government organizations in addressing current challenges and preparing for future needs [2] - The company employs approximately 3,410 individuals across 120 locations globally, combining local expertise with an integrated approach to project management [2] - Montrose offers a wide range of services including air measurement, laboratory services, regulatory compliance, environmental emergency response, permitting, engineering, and remediation [2] - The company focuses on delivering innovative and practical solutions to meet immediate client needs and maintain a strategic advantage [2]

Revenue and Income - Total revenues from Investment Banking & Equities and Investment Management segments include fees for services, transaction-related client reimbursements, and other revenue, with net revenues reflecting total revenues less interest expense [176]. - Net Revenues for 2024 were $2.98 billion, an increase of $553.6 million, or 23%, compared to $2.43 billion in 2023 [206]. - Net Income Attributable to Evercore Inc. was $378.3 million in 2024, a 48% increase from $255.5 million in 2023 [205]. - Total revenues for 2024 reached $2,996,361, an increase of 22.7% from $2,442,666 in 2023 [343]. - Net income attributable to Evercore Inc. for 2024 was $378,279, representing a 48.1% increase compared to $255,479 in 2023 [343]. - Comprehensive income attributable to Evercore Inc. was $368,760 in 2024, compared to $256,883 in 2023, reflecting a 43.5% increase [345]. Advisory and Underwriting Fees - Revenue trends in the advisory business are correlated to M&A activity, restructuring activity, and capital advisory activity, with fluctuations based on market conditions and client transaction completions [178]. - Advisory Fees increased by $476.7 million, or 24%, to $2.44 billion in 2024, while Underwriting Fees rose by $46.1 million, or 41%, to $157.1 million [206]. - Advisory fees increased to $2,440,605 in 2024, up 24.3% from $1,963,857 in 2023 [343]. - Underwriting fees are recognized when public and private offerings of equity and debt securities are completed, reflecting the satisfaction of performance obligations [373]. Employee Compensation and Expenses - Employee compensation and benefits expenses include all payments for services rendered, with a focus on maintaining competitive compensation levels to retain key personnel [183]. - Employee Compensation and Benefits Expense was $1.97 billion in 2024, up $317.2 million, or 19%, from $1.66 billion in 2023, representing 66.3% of Net Revenues [208]. - The ratio of Employee Compensation and Benefits Expense to Net Revenues is a key measure for assessing compensation costs relative to performance [194]. - Non-Compensation expenses totaled $471.3 million in 2024, an increase of $64.3 million, or 16%, driven by higher professional fees and travel expenses [209]. - Employee Compensation and Benefits Expense was $46.1 million in 2024, an increase of $6.7 million or 17% compared to $39.4 million in 2023 [241]. Assets and Management - Assets Under Management (AUM) in Wealth Management increased to $13.9 billion at December 31, 2024, up $1.6 billion, or 13%, from $12.3 billion at December 31, 2023 [235]. - AUM for Wealth Management increased by 11% due to market appreciation and 2% due to client flows in 2024 [239]. - The Investment Management segment includes wealth management and private equity services, with interests in Atalanta Sosnoff and ABS Investment Management [354]. Cash Flow and Investments - Operating cash flows resulted in a net inflow of $988.2 million in 2024, primarily related to earnings [245]. - Cash, Cash Equivalents, and Restricted Cash increased to $882.1 million at December 31, 2024, up $276.6 million from $605.5 million at December 31, 2023 [245]. - The company repurchased 1,312,895 Class A Shares at an average cost of $203.84, totaling $267.6 million during 2024 [255]. - The company experienced a net loss on investments of $(33,682,000) in 2024, slightly improved from $(34,671,000) in 2023 [351]. Tax and Deferred Tax Assets - The provision for income taxes in 2024 was $115.4 million, reflecting an effective tax rate of 21.6%, compared to $80.6 million and 22.0% in 2023 [212]. - The Company estimates that it must generate approximately $1.7 billion of future taxable income to realize the gross deferred tax asset balance of $417.6 million [320]. - Management has concluded that it is more-likely-than-not that the deferred tax assets will be realized based on sufficient future taxable income [319]. Financial Position and Liabilities - Total current assets rose to $2,987,901 in 2024, a 14.7% increase from $2,605,217 in 2023 [341]. - Total liabilities increased to $2,232,163 in 2024, up 16.2% from $1,920,808 in 2023 [341]. - Total equity at December 31, 2024, reached $1,941,808,000, compared to $1,782,490,000 at the end of 2023, reflecting a growth of 8.9% [348]. Revenue Recognition and Accounting Policies - Revenue recognition follows ASC 606, with advisory fees recognized upon the completion of performance obligations [367]. - The Company applies significant judgment in determining the timing of revenue recognition, particularly for advisory services [370]. - The financial statements are prepared in accordance with U.S. GAAP, ensuring compliance with generally accepted accounting principles [355].

Core Insights - Evercore Inc. reported fourth-quarter 2024 adjusted earnings per share of $3.41, exceeding the Zacks Consensus Estimate of $2.90 and up from $2.02 in the prior-year quarter [1][2] - The company's total revenues for the fourth quarter reached $980.5 million, a 25% increase year over year, and surpassed the Zacks Consensus Estimate by 12.8% [4] - Net income attributable to common shareholders was $1.40 billion, reflecting a 69.7% increase from the previous year [2] Financial Performance - For the full year 2024, adjusted earnings per share were reported at $9.42, up from $6.46 in the prior year, with net income rising 48.1% to $3.78 billion [3] - Total expenses for the fourth quarter increased by 14.4% year over year to $762.7 million, primarily due to rising costs across all expense components [4] - The adjusted operating margin improved to 22.2%, compared to 15.7% in the prior-year quarter [5] Segment Performance - In the Investment Banking & Equities segment, net revenues increased by 24.5% year over year to $953.9 million, with operating income surging 85.2% to $208.1 million [6] - The Investment Management segment reported net revenues of $21.4 million, a 19.2% increase from the prior year, although operating income decreased by 16.3% [7] Balance Sheet and Liquidity - As of December 31, 2024, cash and cash equivalents stood at $873 million, with investment securities and certificates of deposit totaling $1.5 billion [8] - Current assets exceeded current liabilities by $1.8 billion, indicating a strong liquidity position [8] Capital Distribution - The company declared a quarterly dividend of 80 cents per share, payable on March 14, 2025, to stockholders of record as of February 28, 2025 [9] - In the reported quarter, Evercore repurchased 0.1 million shares at an average price of $264.91 [9] Strategic Outlook - Evercore's revenue growth is attributed to efforts in expanding its client base in advisory solutions, supported by a solid liquidity position [11] - However, the rising expense base may hinder bottom-line growth in the near term [11]

Financial Data and Key Metrics Changes - In 2024, Evercore Inc. achieved firm-wide adjusted net revenues of just over $3 billion, marking the second-best year ever for the company [8] - For Q4 2024, net revenues were $975 million, operating income was $213 million, and EPS on a GAAP basis was $3.30 [29] - Adjusted net revenues for Q4 2024 increased by 24% year-over-year, while full-year adjusted net revenues increased by 23% compared to 2023 [30] - Adjusted operating income for Q4 2024 rose by 76% year-over-year, and adjusted EPS increased by 69% [31][32] - The adjusted operating margin for Q4 was 22.2%, up 650 basis points from the previous year [32] Business Line Data and Key Metrics Changes - Adjusted advisory fees for Q4 2024 were $850 million, a 29% increase year-over-year, and full-year advisory fees reached $2.4 billion, up 24% compared to 2023 [33] - Underwriting fees for Q4 2024 were $26 million, up 38% from a year ago, with full-year underwriting revenues at $157 million, up 41% [34] - Asset management and administration fees for Q4 and full-year were $22 million and $85 million, respectively, both increasing by 16% year-over-year [35] Market Data and Key Metrics Changes - The European advisory business saw momentum build in Q4 2024, finishing the year with a strong backlog for 2025, although it still lags behind the U.S. market [16] - The underwriting business rebounded in 2024, particularly among follow-ons, with over 50% of underwriting revenue coming from sectors outside healthcare [21] Company Strategy and Development Direction - The company is focused on diversifying its revenue base, with over 40% of total revenues coming from non-M&A sources [10] - Evercore Inc. aims to continue improving expense margins and enhancing shareholder value over time [25] - The firm is committed to recruiting high-quality talent, having added nearly 60 new senior bankers over the past three years [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing improved market trends, increased CEO confidence, and a strong macroeconomic backdrop [11] - Despite some geopolitical uncertainties, the deal-making environment is expected to gradually improve throughout the year [12] - The company anticipates continued strong performance in its private capital advisory and private funds group, which achieved record years [19][94] Other Important Information - The adjusted compensation ratio improved by 190 basis points in 2024, reflecting the company's focus on expense management [28] - The company returned $591 million to shareholders through dividends and share repurchases in 2024 [42] Q&A Session Summary Question: Expectations for comp ratio improvement in 2025 - Management indicated striving for meaningful improvement in the comp ratio for 2025, although they do not provide specific guidance [49] Question: Recruiting expectations for the coming year - The company is actively working on recruiting and retaining talent, with a robust pipeline of candidates [55][57] Question: M&A activity and larger deals post-election - Management noted robust activity at the board level and a strengthening backlog, with optimism for large deals [66] Question: Acceleration in M&A activity - Management observed that while January had lower announcement volumes, overall activity levels remain robust and are expected to build throughout the year [74] Question: Outlook for restructuring business - The restructuring business had a strong year, and management expects activity levels to remain elevated due to increased liability management needs [110]

Core Insights - Evercore reported a revenue of $980.5 million for the quarter ended December 2024, marking a 25% increase year-over-year and a surprise of +12.81% over the Zacks Consensus Estimate of $869.15 million [1] - The earnings per share (EPS) for the quarter was $3.41, compared to $2.02 in the same quarter last year, resulting in an EPS surprise of +17.59% against the consensus estimate of $2.90 [1] Financial Performance Metrics - Net Revenues from Other Revenue were reported at $24.42 million, exceeding the average estimate of $22.50 million, but reflecting a -23.2% change year-over-year [4] - Adjusted Net Revenues from Investment Management, specifically Asset Management and Administration Fees, were $22.04 million, slightly below the average estimate of $22.22 million, showing a +16.3% year-over-year change [4] - Adjusted Net Revenues from Investment Banking & Equities totaled $958.20 million, significantly surpassing the average estimate of $823.93 million, with a year-over-year increase of +24.3% [4] Stock Performance - Over the past month, Evercore's shares have returned +2.9%, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Evercore (EVR) reported quarterly earnings of $3.41 per share, exceeding the Zacks Consensus Estimate of $2.90 per share, and showing a significant increase from $2.02 per share a year ago, representing an earnings surprise of 17.59% [1] - The company achieved revenues of $980.5 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 12.81% and up from $784.17 million year-over-year [2] - Evercore has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of Evercore's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $3.70, with expected revenues of $808.09 million, and for the current fiscal year, the EPS estimate is $16.08 on revenues of $3.76 billion [7] Industry Context - The Financial - Investment Bank industry, to which Evercore belongs, is currently ranked in the top 1% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Fourth Quarter Net Revenues were $975.3 million, a 24% increase year-over-year, and Full Year Net Revenues reached $3.0 billion, up 23% from 2023[1] - Fourth Quarter Operating Income was $212.6 million, an 81% increase year-over-year, with Operating Margins of 21.8%, up 679 basis points from 2023[1] - Net Income Attributable to Evercore Inc. for Q4 was $140.4 million, a 70% increase year-over-year, and Full Year Net Income was $378.3 million, up 48% from 2023[1] - Total revenues for the twelve months ended December 31, 2024, were $2,996.4 million, up from $2,442.7 million in 2023, representing a 22.7% increase[54] - Net income attributable to Evercore Inc. for the twelve months ended December 31, 2024, was $378.3 million, compared to $255.5 million in 2023, reflecting a 48.1% increase[54] - Basic net income per share attributable to Evercore Inc. common shareholders increased to $9.86 in 2024 from $6.71 in 2023[54] - Adjusted Net Revenues for Q4 2024 were $790.3 million, a 24% increase from Q4 2023, while full year adjusted net revenues reached $3.0 billion, up 23% year-over-year[25] - Adjusted Net Revenues for the twelve months ended December 31, 2024, were $3.0 billion, up 22.5% from $2.4 billion in 2023[59] - Adjusted Operating Income for Q4 2024 was $217.7 million, representing an increase of 75.8% compared to $123.9 million in Q4 2023[59] - Diluted Earnings Per Share (EPS) for Q4 2024 was $3.30, up 62.1% from $2.03 in Q4 2023[59] - Adjusted Diluted EPS for the twelve months ended December 31, 2024, was $9.42, a 46.5% increase from $6.46 in 2023[59] Advisory and Underwriting Fees - Advisory Fees for Q4 increased by $190.2 million, or 29%, year-over-year, while Full Year Advisory Fees rose by $476.7 million, or 24%[14] - Underwriting Fees for Q4 increased by $7.3 million, or 38%, year-over-year, with Full Year Underwriting Fees up by $46.1 million, or 41%[15] - Advisory fees in Q4 2024 increased by $190.0 million, or 29%, year-over-year, driven by large transactions[27] - Underwriting Fees for Q4 2024 rose by $7.3 million, or 38%, year-over-year, reflecting an increase in transaction participation[28] - Advisory fees increased to $849.556 million in Q4 2024, up 28.9% from $659.338 million in Q4 2023[67] Assets and Shareholder Returns - Total Assets Under Management as of December 31, 2024, were $13.9 billion, reflecting a 13% increase from $12.3 billion in 2023[13] - Evercore returned $590.6 million to shareholders in 2024 through dividends and share repurchases[1] - As of December 31, 2024, cash and cash equivalents were $873.0 million, with current assets exceeding current liabilities by $1.8 billion[36] - The Company declared a quarterly dividend of $0.80 per share to be paid on March 14, 2025[43] - In Q4 2024, the Company repurchased 14,000 shares at an average price of $297.41 and 0.1 million shares at an average price of $269.06, totaling 2.3 million shares repurchased throughout 2024 at an average price of $193.40[44] Employee Compensation and Costs - Employee Compensation and Benefits increased by $79.5 million, or 14%, year-over-year in Q4 2024, with a compensation ratio of 65.6% compared to 71.4% in Q4 2023[19] - Full year Employee Compensation and Benefits increased by $317.2 million, or 19%, year-over-year, with a full year compensation ratio of 66.3% versus 68.3% in the prior year[19] - Non-Compensation Costs rose by $16.8 million, or 16%, year-over-year in Q4 2024, primarily due to increased professional fees and occupancy expenses[20] - Full year adjusted Non-Compensation Costs increased by $64.3 million, or 16%, year-over-year, with a full year adjusted Non-Compensation ratio of 15.8% down from 16.8%[20] - Employee compensation and benefits for the full year 2024 totaled $1.974036 billion, up 19.1% from $1.656875 billion in 2023[67] Future Outlook - The company expects strong momentum to continue into 2025, with gradual market improvement anticipated throughout the year[3] - Future guidance indicates a projected revenue growth of 5-7% for the upcoming fiscal year, driven by increased advisory activity and market expansion[64] - The company plans to expand its market presence through strategic acquisitions and new product offerings in 2025[64] Segment Performance - Investment Banking & Equities segment net revenues for Q4 2024 reached $958.2 million, a 3.5% increase from Q4 2023's $770.7 million[64] - Total expenses for the Investment Banking & Equities segment in Q4 2024 were $745.9 million, compared to $653.9 million in Q4 2023, reflecting a 14.1% increase[64] - Operating income for the Investment Banking & Equities segment in Q4 2024 was $212.3 million, a 12.5% increase from $116.7 million in Q4 2023[64] - Investment Management segment net revenues for Q4 2024 were $22.3 million, up from $19.7 million in Q4 2023, indicating a 7.5% increase[64] - Operating income for the Investment Management segment in Q4 2024 was $5.4 million, compared to $7.1 million in Q4 2023, showing a decrease of 24.0%[64]

Investment Strategy - The Value Lab focuses on long-only value ideas, targeting international mispriced equities with a portfolio yield of about 4% [1] - The Valkyrie Trading Society shares high-conviction developed market ideas that are downside limited and aim to generate non-correlated and outsized returns [3] Services Offered - The Value Lab provides members with a portfolio featuring real-time updates, 24/7 chat support, global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions [2] Performance and Experience - The Value Lab has performed well over the last 5 years, leveraging experience in international markets [1]