Group 1: Earnings Performance - Evercore reported quarterly earnings of $3.49 per share, significantly exceeding the Zacks Consensus Estimate of $1.60 per share, and up from $2.13 per share a year ago, representing an earnings surprise of 118.13% [1] - The company posted revenues of $699.9 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 19.27%, compared to year-ago revenues of $587.33 million [2] Group 2: Stock Performance and Outlook - Evercore shares have declined approximately 28.2% since the beginning of the year, contrasting with the S&P 500's decline of 5.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.67 on revenues of $684.56 million, and for the current fiscal year, it is $9.67 on revenues of $3.14 billion [7] Group 3: Industry Context - The Financial - Investment Bank industry, to which Evercore belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Data and Key Metrics Changes - For Q1 2025, adjusted net revenues were $700 million, a 19% increase year-over-year [18] - Adjusted operating income for Q1 2025 was $116 million, up 28% compared to the same period last year [18] - Adjusted earnings per share (EPS) rose to $3.49, reflecting a 64% increase year-over-year [19] - Adjusted operating margin improved to 16.6%, up from 15.4% in the prior year [19] Business Line Data and Key Metrics Changes - Adjusted advisory fees reached $557 million, a 29% increase year-over-year, indicating strong performance in both M&A and non-M&A advisory [19] - Underwriting revenues were $54 million, down 2% from the previous year, with lower follow-on activity but improvements in the IPO market [20] - Commissions and related revenue increased by 14% year-over-year to $55 million, driven by higher trading volumes [20] - Adjusted asset management and administration fees rose 8% year-over-year to $22 million, supported by an increase in assets under management (AUM) [21] Market Data and Key Metrics Changes - Global transaction volumes increased in Q1 2025 compared to the prior year, although the number of transactions declined due to macroeconomic headwinds [12] - The private capital advisory group achieved record performance in Q1, particularly in GP-led continuation vehicles [13] - The equity capital markets business showed strong momentum, with expectations for a recovery as market volatility stabilizes [14] Company Strategy and Development Direction - The company is focused on long-term value creation for clients and shareholders, maintaining a capital return philosophy [15] - Evercore aims to invest in talent and expand its capabilities across various sectors, including technology, healthcare, and private capital advisory [10][67] - The firm is positioned to navigate through challenging market conditions, emphasizing a diversified platform across geographies and sectors [8] Management's Comments on Operating Environment and Future Outlook - Management noted increased volatility in global financial markets due to geopolitical tensions and inflation concerns, impacting CEO and Board confidence levels [7][9] - There is a robust backlog of transactions, with active client dialogues indicating pent-up demand for M&A activity [9][36] - The company expects transaction levels to increase once there is greater clarity in the macroeconomic environment [9] Other Important Information - The adjusted compensation ratio for Q1 was 65.7%, slightly down from the previous year, with non-compensation expenses rising 14% year-over-year [22][23] - The company returned a record $454 million to shareholders through share repurchases and dividends [26] - The effective tax rate for the quarter was negative 39.7%, influenced by stock price appreciation at the time of vesting [25] Q&A Session Summary Question: Insights on Backlogs and Client Types - Management expressed satisfaction with the robust and growing backlog, indicating strong engagement across various sectors, particularly in software and restructuring [36][37] Question: Outlook for Private Capital Advisory - The private capital advisory business remains strong, with continuity funds gaining traction as a method for sponsors to return capital to LPs [41][42] Question: Comparison of M&A Activity in Europe vs. the U.S. - Management noted that while there is healthy activity in Europe, it is not necessarily stronger than in the U.S., with ongoing uncertainty affecting both regions [49][50] Question: Compensation Ratio and Revenue Growth - Management indicated that revenue growth is crucial for improving the compensation ratio, with a strong backlog supporting future performance [56][57] Question: Restructuring Environment and Liability Management - The restructuring business is performing well, with no limitations on serving clients in liability management, despite concerns about high interest rates [60][61] Question: Hiring Plans in a Slower M&A Environment - The company plans to continue hiring top talent across various sectors, maintaining a consistent approach regardless of market conditions [66][67] Question: Equity Capital Markets Outlook - Management is optimistic about the equity capital markets, with a good backlog of transactions ready to proceed once market volatility decreases [70][71]

Financial Data and Key Metrics Changes - For Q1 2025, adjusted net revenues were $700 million, a 19% increase year-over-year [18] - Adjusted operating income for Q1 2025 was $116 million, up 28% from the previous year [18] - Adjusted earnings per share (EPS) increased 64% year-over-year to $3.49 [19] - Adjusted operating margin improved to 16.6%, compared to 15.4% in the prior year [19] Business Line Data and Key Metrics Changes - Adjusted advisory fees reached $557 million, a 29% increase year-over-year, reflecting strong performance in both M&A and non-M&A advisory [19] - Underwriting revenues were $54 million, down 2% from the previous year, influenced by lower follow-on activity [20] - Commissions and related revenue increased 14% year-over-year to $55 million, driven by higher trading volumes [20] - Adjusted asset management and administration fees rose 8% year-over-year to $22 million [21] Market Data and Key Metrics Changes - Global transaction volumes increased in Q1 compared to the prior year, although the number of transactions declined due to macroeconomic headwinds [12] - The private capital advisory group had a record first quarter, particularly in GP-led continuation vehicles [13] - The equity capital markets business showed strong momentum, with the best first quarter since 2020, driven by market volatility [14] Company Strategy and Development Direction - The company remains focused on long-term value creation for clients and shareholders, with a commitment to invest in talent through the cycle [9][15] - The firm is strategically positioned to navigate increased market volatility and uncertainty, emphasizing a diversified platform across various sectors and geographies [6][7] - The company plans to continue hiring in key areas such as technology, healthcare, and Europe, despite a potentially slower M&A backdrop [66] Management's Comments on Operating Environment and Future Outlook - Management noted that heightened geopolitical and trade tensions are causing increased volatility in financial markets, impacting CEO and Board confidence levels [6][8] - There is a robust backlog and active client dialogues, indicating pent-up demand for transactions once market conditions stabilize [8][29] - The company expects Q2 and Q3 results to be impacted by market volatility, but remains optimistic about medium to long-term prospects [17][28] Other Important Information - The company returned a record $454 million of capital to shareholders through share repurchases and dividends [25] - The adjusted tax rate for the quarter was negative 39.7%, influenced by a significant net tax benefit [24] - The firm maintains a strong cash position of nearly $1.4 billion, consistent with the previous year [25][28] Q&A Session Summary Question: Insights on Backlogs and Client Types - Management expressed satisfaction with the robust and growing backlog, indicating that while there are pauses, cancellations are minimal [34][38] Question: Outlook for Private Capital Advisory - The private capital advisory business is performing strongly, particularly in continuity funds, which are seen as effective for monetizing assets [40][41] Question: Comparison of M&A Activity in Europe vs. the U.S. - Management noted that while there is healthy activity in Europe, it is not necessarily driven by stronger forces than in the U.S., and recovery timelines remain uncertain [46][49] Question: Compensation Ratio and Revenue Growth - Management indicated that revenue growth is crucial for improving the compensation ratio, with a strong backlog supporting future performance [52][56] Question: Restructuring Environment and Liability Management - The restructuring business is healthy, with no limitations on serving clients in liability management, despite concerns about high rates and potential bankruptcies [58][60] Question: Hiring Plans in a Slower M&A Environment - The company plans to continue hiring strong talent in key areas, maintaining a consistent approach regardless of market conditions [62][66] Question: Equity Capital Markets Outlook - Management is optimistic about the equity capital markets, with a good backlog of transactions ready to go once market conditions stabilize [68][70]

Financial Performance - First Quarter Net Revenues reached $694.8 million on a U.S. GAAP basis, a 20% increase compared to Q1 2024[2] - Operating Income for Q1 was $111.2 million on a U.S. GAAP basis, reflecting a 32% increase year-over-year[3] - Net Income attributable to Evercore Inc. was $146.2 million, up 70% from $85.7 million in Q1 2024[2] - Diluted Earnings Per Share increased to $3.48, compared to $2.09 in the same quarter last year, marking a 66% rise[2] - Net Revenues for Q1 2025 increased to $694.829 million, up 19.6% from $580.815 million in Q1 2024[49] - Adjusted Net Revenues for Q1 2025 were $699.901 million, compared to $587.328 million in Q1 2024, reflecting a 19.1% increase[49] - Operating Income on a U.S. GAAP basis for Q1 2025 was $111.184 million, a 32.2% increase from $84.120 million in Q1 2024[49] - Adjusted Operating Income for Q1 2025 reached $116.256 million, up from $90.633 million in Q1 2024, representing a 28.3% increase[49] - Net Income Attributable to Evercore Inc. on a U.S. GAAP basis for Q1 2025 was $146.184 million, compared to $85.693 million in Q1 2024, marking a 70.5% increase[49] - Adjusted Net Income Attributable to Evercore Inc. for Q1 2025 was $154.803 million, up from $92.867 million in Q1 2024, a 66.7% increase[49] - Diluted Earnings Per Share (EPS) on a U.S. GAAP basis for Q1 2025 was $3.48, compared to $2.09 in Q1 2024, an increase of 66.5%[49] - Adjusted Diluted EPS for Q1 2025 was $3.49, up from $2.13 in Q1 2024, reflecting a 64.0% increase[49] - The Operating Margin on a U.S. GAAP basis improved to 16.0% in Q1 2025 from 14.5% in Q1 2024[49] Advisory and Revenue Streams - Advisory Fees rose by $127.5 million, or 30%, year-over-year, driven by large transactions[13] - Evercore advised on significant transactions, including Calpine's $29.1 billion sale to Constellation Energy[3] - Net revenues for Investment Banking & Equities increased to $674.532 million in Q1 2025, up 20% from $561.728 million in Q1 2024[58] - Advisory fees rose to $557.349 million, a 30% increase compared to $429.838 million in the same period last year[58] - Commissions and Related Revenue increased by $6.9 million, or 14%, year-over-year, driven by higher trading commissions due to increased trading volume[24] - Asset Management and Administration Fees reached $20.983 million, a 12.9% increase from $18.699 million in Q1 2024[58] Expenses and Costs - Total expenses for the company were $583.645 million, reflecting a 17.5% increase from $496.695 million in Q1 2024[58] - Employee compensation and benefits expenses increased to $459.825 million, up 18.6% from $387.705 million in the same quarter last year[58] - Adjusted Employee Compensation and Benefits increased by $72.1 million, or 19%, year-over-year, with an adjusted compensation ratio of 65.7% compared to 66.0% in the prior year[27] - Non-compensation costs rose to $123.820 million, a 13.5% increase compared to $108.990 million in Q1 2024[58] - Adjusted Non-Compensation Costs rose by $14.8 million, or 14%, year-over-year, primarily due to increased expenses in communications, information services, and occupancy[28] Shareholder Returns - The company returned $454.3 million to shareholders through dividends and share repurchases during the quarter[3] - The quarterly dividend was increased by 5% to $0.84 per share[3] - The Board of Directors declared a quarterly dividend of $0.84 per share to be paid on June 13, 2025[37] - During the first quarter, the company repurchased 1.6 million shares at an average price of $261.15 per share[38] Assets and Employment - Total Assets Under Management increased by 5% to $13.7 billion from $12.999 billion in Q1 2024[12] - As of March 31, 2025, cash and cash equivalents were $553.0 million, with current assets exceeding current liabilities by $1.4 billion[30] - The company employed approximately 2,395 people as of March 31, 2025, up from 2,225 in the previous year[31] Taxation - The effective tax rate for Q1 was (37.2%), influenced by a tax benefit of $74.3 million related to employee share-based awards[19] - The first quarter adjusted effective tax rate was (39.7%), significantly higher than (9.3%) in the prior year, influenced by share price appreciation upon vesting of employee awards[29] Strategic Initiatives - The company continues to focus on expanding its market presence and enhancing its service offerings through strategic initiatives[60]

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].

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. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.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 ...

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]