Core Viewpoint - Lazard, Inc. (LAZ) has experienced a significant share price increase of 42.7% over the past year, outperforming the industry growth of 20.8% and the S&P 500 Index's 22.7% rise [1] Performance Summary - LAZ's peers, Brookfield Asset Management Inc. (BAM) and Burford Capital Limited (BUR), have shown varied performance, with BAM gaining 47.7% and BUR declining by 1.9% [1] Factors Driving Growth - The revival of deal-making activities, supported by favorable policies and a stabilizing macroeconomic environment, is expected to enhance M&A activities, benefiting LAZ's top line [5][6] - Lazard's diversified Asset Under Management (AUM) mix is anticipated to drive overall revenue growth [6] - Recent acquisitions, including Truvvo Partners with $3.8 billion in AUM, are expected to contribute positively to revenue [8] - The establishment of Lazard Elaia Capital aims to launch a growth capital fund focused on private companies in the technology sector, aligning with Lazard's long-term strategy [9] Financial Position - As of December 31, 2024, Lazard held senior debt of $1.69 billion and maintained investment-grade credit ratings, providing access to favorable debt market conditions [10] - The company reported cash and cash equivalents of $1.31 billion and $200 million available under its credit facility, indicating decent financial flexibility [11] Long-term Goals - Lazard aims to double its revenues by 2030, driven by its Asset Management and Advisory segments, with an expected total shareholder return of 10-15% per year through 2030 [12] Challenges - The company has faced significant net outflows, particularly in the equity asset class, with $35.7 billion in outflows reported in 2024 [14] - Financial Advisory revenues, which contributed 59.9% to total operating revenues, have seen declines due to muted global M&A activity [15] Valuation - LAZ is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 12.29X, which is below the industry average of 17.02X, indicating a potentially attractive valuation [16][18] Earnings and Sales Estimates - Zacks Consensus Estimates for sales in 2025 are projected at $3.21 billion, with a year-over-year growth estimate of 11.08% [21] - Earnings per share (EPS) estimates for 2025 are projected at $4.24, reflecting a year-over-year growth of 81.20% [23]

Core Viewpoint - Lazard Inc. reported strong fourth-quarter 2024 adjusted earnings per share of 78 cents, exceeding the Zacks Consensus Estimate of 51 cents and up from 66 cents in the prior year [1][2]. Financial Performance - The company's net income (GAAP) for 2024 was $86.3 million, a 36% increase from the previous year, with earnings of $2.34 per share surpassing the consensus estimate of $2.06 [3]. - Quarterly operating revenues reached $812.4 million, reflecting a 7% year-over-year increase and exceeding the Zacks Consensus Estimate by 9.9% [4]. - For the full year 2024, operating revenue totaled $2.89 billion, which was 18% higher than the previous year and also above the Zacks Consensus Estimate by 2.5% [4]. Expense Management - Operating expenses decreased to $709.8 million, down 3% year over year, with adjusted compensation expenses to operating revenues ratio improving to 65.6% from 67.8% [5]. Segment Performance - Financial Advisory segment adjusted operating revenues were $507.7 million, up 6% year-over-year [6]. - Asset Management segment adjusted operating revenues increased by 5% to $287.2 million [6]. - Corporate segment adjusted operating revenues surged 77% to $17.6 million [6]. Assets Under Management (AUM) - As of December 31, 2024, total AUM was $226.3 billion, down 8.2% from $246.7 billion a year earlier, impacted by foreign exchange appreciation and net outflows [7]. - The average AUM for the quarter was $233.8 billion, a slight decrease of 0.1% year over year [7]. Balance Sheet Strength - The company's cash and cash equivalents stood at $1.3 billion, showing a marginal increase from the prior year, while stockholders' equity rose to $685.2 million, up 0.7% sequentially [8]. Shareholder Returns - In the reported quarter, Lazard repurchased $16 million worth of its common shares [9]. - A quarterly dividend of 50 cents was declared on January 29, 2025, payable on February 21, 2025, to stockholders of record as of February 10, 2025 [10]. Strategic Outlook - The company is focused on organic growth, as indicated by revenue increases, and maintains a strong liquidity position, although reliance on advisory revenues and net outflows may impact future top-line growth [11].

Group 1 - Lazard, Inc. (NYSE: LAZ) reported a quarter with unimpressive performance, showing lower revenue growth compared to peers [2] - The company is gaining traction with its investment group, The Value Lab, which offers members a portfolio with real-time updates and various market insights [2] - The Value Lab aims for a portfolio yield of about 4% and focuses on identifying mispriced international equities [1] Group 2 - The Valkyrie Trading Society consists of analysts who share high-conviction investment ideas that are expected to generate non-correlated and outsized returns [3] - The society operates as long-only investors, focusing on downside-limited strategies in the current economic environment [3]

Group 1 - Lazard reported revenue of $812.43 million for Q4 2024, a year-over-year increase of 6.8%, with EPS of $0.78 compared to $0.66 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $739.49 million by 9.86%, and the EPS surpassed the consensus estimate of $0.51 by 52.94% [1] - The company's stock has returned +2.4% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] Group 2 - Total Assets under Management (AUM) at the end of the period was $226.32 billion, below the estimated $237.62 billion [4] - Total Equity AUM was reported at $174.94 billion, compared to the estimated $183.37 billion [4] - Adjusted net revenue for Asset Management was $287.21 million, slightly above the average estimate of $282.42 million, reflecting a year-over-year change of +4.9% [4] - Adjusted net revenue for Financial Advisory was $507.67 million, exceeding the estimated $445.29 million, with a year-over-year increase of +6.4% [4] - Adjusted net revenue for Corporate was $17.55 million, significantly higher than the estimated $11.78 million, representing a year-over-year increase of +77.3% [4]

January 2025 Investor Presentation I N V E S T O R P R E S E N T A T I O N Safe Harbor This presentation contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "mig ...

Financial Performance - Lazard reported fourth-quarter 2024 net revenue of $817 million, a 1% increase from $806 million in Q4 2023, and full-year net revenue of $3,052 million, up 21% from $2,515 million in 2023[1]. - Adjusted net revenue for the fourth quarter was $812 million, a 7% increase from $761 million in Q4 2023, and for the full year, it was $2,890 million, an 18% increase from $2,440 million in 2023[2]. - Total revenue for Q4 2024 was $839,018,000, representing a 4% increase from Q3 2024 and a 2% increase from Q4 2023[26]. - Total revenue for the year ended December 31, 2024, was $3,139,904,000, a 21% increase from the previous year[29]. - Net income attributable to Lazard, Inc. for Q4 2024 was $86,310,000, a decrease of 20% compared to Q3 2024, but an increase of 36% compared to Q4 2023[26]. - Net income attributable to Lazard, Inc. for the year ended December 31, 2024, was $279,912,000, compared to a net loss of $75,479,000 in 2023[29]. Revenue Breakdown - Financial Advisory revenue increased by 28% in 2024, reaching $1,756 million, while Asset Management revenue grew by 3% to $1,187 million[2]. - Net revenue for Financial Advisory increased by 28% to $1,731,049, while Asset Management revenue grew by 3% to $1,099,874, resulting in an adjusted net revenue of $2,889,554, up 18% from the previous year[38]. Adjusted Metrics - The adjusted net income for Q4 2024 was $85 million, a 31% increase from $65 million in Q4 2023, and for the full year, it was $244 million, compared to $75 million in 2023[1]. - Adjusted net revenue for Q4 2024 was $812,433,000, a 26% increase year-over-year[34]. - Adjusted operating income for Q4 2024 was $125,868,000, reflecting a 55% increase compared to Q3 2024[34]. - Adjusted operating income surged by 148% to $410,945, with an adjusted operating margin improving to 14.2% from 6.8%[38]. - Adjusted net income reached $244,110, with adjusted diluted net income per share increasing to $2.34 from $0.77[38]. Assets and Management - Assets Under Management (AUM) as of December 31, 2024, were $226 billion, down 8% from $247 billion a year earlier[1]. - Average AUM for 2024 was $243 billion, a 4% increase from $233 billion in 2023[8]. - Total Assets Under Management (AUM) decreased by 8.6% to $226,321 million, with net outflows of $10,068 million during the quarter[46]. - The company experienced a decline in total equity AUM by 8.7% year-over-year, with emerging markets equity down by 5.2%[46]. Shareholder Returns - Lazard returned $303 million to shareholders in 2024, including $179 million in dividends and $60 million in share repurchases[13]. Compensation and Expenses - The adjusted compensation ratio for Q4 2024 was 65.6%, down from 67.8% in Q4 2023, with a target of 60% for 2025[10]. - Non-compensation expenses for the full year of 2024 were $670 million on a U.S. GAAP basis, 3% lower than 2023[11]. - The adjusted compensation ratio improved to 65.9% from 69.8%, while adjusted non-compensation ratio decreased to 19.9% from 23.4%[38]. - Compensation and benefits expense on a U.S. GAAP basis for the year ended December 31, 2024, was $2,003,212,000, an increase from $1,946,010,000 in the previous year[53]. Taxation - The effective tax rate on an adjusted basis for the full year 2024 was 24.4%, compared to 14.5% in 2023[12]. - The adjusted effective tax rate rose to 24.4% from 14.5%[38]. - The company reported an adjusted provision for income taxes of $78,792,000 for the year ended December 31, 2024, compared to $12,761,000 in the previous year[59].

Core Insights - Lazard, Inc. reported a preliminary asset under management (AUM) balance of $234.4 billion for November 2024, reflecting a 0.6% decrease from $235.8 billion as of October 30, 2024, primarily due to net outflows of $2.3 billion and foreign exchange depreciation of $2.2 billion, although market appreciation contributed positively with $3 billion [1] AUM Breakdown - In November, Lazard's equity assets decreased by 0.2% to $181.8 billion, while fixed-income assets fell by 2.2% to $44.5 billion [2] - Other assets also declined by 1.6% to $8 billion from the previous month [3] Revenue and Cost Management - The company's heavy reliance on financial advisory fees for revenue, combined with continued net outflows, is expected to impact top-line growth in the near future; however, cost-management efforts are anticipated to support the bottom line [3] Market Performance - In the past six months, Lazard's shares have increased by 41.5%, outperforming the industry growth of 24.2% [10]

Core Viewpoint - Lazard, Inc. reported a preliminary asset under management (AUM) balance of $235.8 billion for October 2024, marking a 4.8% decrease from $247.7 billion as of September 30, 2024 [1] AUM Breakdown - The decline in AUM was attributed to market depreciation of $4.4 billion, net outflows of $3.3 billion, and foreign exchange depreciation of $4.2 billion [2] - In October, Lazard's equity assets decreased by 4.9% to $182.1 billion, while fixed-income assets fell by 5% to $45.5 billion; other assets saw a slight increase to $8.2 billion [2] Revenue and Cost Management - The company's heavy reliance on financial advisory fees for revenue and ongoing net outflows are expected to impact top-line growth in the near future; however, cost-management efforts are anticipated to support the bottom line [3] Price Performance - Over the past six months, Lazard's shares increased by 42%, outperforming the industry growth of 16.4%; the company currently holds a Zacks Rank 3 (Hold) [5] Performance of Other Asset Managers - Franklin Resources, Inc. reported a preliminary AUM of $1.63 trillion as of October 31, 2024, reflecting a 2.9% decrease from the previous month, driven by negative market conditions and long-term net outflows of $18.5 billion [6] - Cohen & Steers, Inc. reported a preliminary AUM of $89.7 billion as of October 31, 2024, which is a 2.2% decline from the prior month, influenced by market depreciation and distributions, partially offset by net inflows [6][7]

Financial Performance - Consolidated net revenue for the third quarter of 2024 was derived from Financial Advisory (47%), Asset Management (38%), and Corporate (15%) segments, compared to 51%, 54%, and (5%) respectively in the same period of 2023[214]. - Net revenue for the three months ended September 30, 2024, was $784,866 thousand, a 50% increase from $523,918 thousand in the same period of 2023[257]. - Operating income for the three months ended September 30, 2024, was $161,187 thousand, compared to a loss of $4,857 thousand in the same period of 2023[257]. - Net income attributable to Lazard for the three months ended September 30, 2024, was $107,938 thousand, a significant increase from $7,139 thousand in the same period of 2023[257]. - Adjusted net revenue for the three months ended September 30, 2024, was $645,914 thousand, up from $531,617 thousand in the same period of 2023[259]. - Total operating expenses for the three months ended September 30, 2024, were $623,679 thousand, compared to $528,775 thousand in the same period of 2023[257]. - Adjusted operating income for the three months ended September 30, 2024, was $81,372 thousand, compared to $30,541 thousand in the same period of 2023[264]. - The company reported net income attributable to Lazard of $108 million for the three months ended September 30, 2024, compared to $7 million in the same period of 2023[267]. - Net revenue increased by $261 million, or 50%, with adjusted net revenue rising by $114 million, or 21%, compared to the 2023 period[268]. M&A Activity - Completed M&A transactions in Q3 2024 totaled $627 billion, a 20% decrease from $783 billion in Q3 2023, with the number of deals falling by 13% from 8,242 to 7,210[227]. - Announced M&A transactions in Q3 2024 reached $888 billion, a 19% increase from $744 billion in Q3 2023, with the number of deals remaining stable at 8,510[227]. - The company anticipates increased M&A activity alongside greater restructuring and liability management activity due to upcoming debt maturities throughout 2024[218]. - Financial Advisory net revenue increased by $105 million, or 39%, driven by a higher number of completed M&A transactions valued over $500 million[288]. - The number of clients with fees greater than $1 million in Financial Advisory rose to 87 from 64 year-over-year[284]. Asset Management - Asset Management net revenue is significantly influenced by the level and product mix of Assets Under Management (AUM), which is affected by market performance and client inflows/outflows[235]. - Total AUM as of September 30, 2024, was $248 billion, an increase of $1 billion from $247 billion at December 31, 2023, driven by market appreciation, partially offset by net outflows[297]. - Average AUM for the three-month period ended September 30, 2024, increased by 4% compared to the same period in 2023, and by 6% compared to the nine-month period ended September 30, 2023[305]. - Approximately 83% of AUM was managed on behalf of institutional and intermediary clients as of September 30, 2024, down from 85% at December 31, 2023[298]. - Asset Management net revenue increased by $18 million, or 2%, to $857 million, with management fees and other revenue rising by $14 million, or 2%[313]. - Asset Management operating income was $42 million, a decrease of $11 million, or 21%, compared to $53 million in the 2023 period[312]. Corporate Segment - Lazard's corporate segment total assets accounted for 53% of consolidated total assets as of September 30, 2024, primarily from cash, investments, and private equity funds[240]. - Corporate segment reported net interest expense decreased by $2 million, or 12%, compared to the 2023 period[317]. - The carrying value of total senior debt was $1,852.8 million as of September 30, 2024, compared to $1,690.2 million at December 31, 2023[340]. Cost Management - The company completed firm-wide cost-saving initiatives in 2023, which were finalized in the first quarter of 2024[248]. - The company aims to maintain a ratio of adjusted compensation and benefits expense to adjusted net revenue in the mid-to-high 50s percentage range[243]. - Adjusted compensation and benefits expense for the three months ended September 30, 2024, was $426,303 thousand, compared to $363,626 thousand in the same period of 2023[261]. - Compensation and benefits expense increased by $101 million, or 28%, compared to the 2023 period[269]. Economic Conditions - Economic conditions are improving, with inflation moderating and central banks lowering interest rates, which may positively impact the company's financial performance[216]. Shareholder Returns - The company repurchased 1,123,413 shares at an average price of $39.10 during the nine months ended September 30, 2024, with $356 million of share repurchase authorization remaining[347]. - A quarterly dividend of $0.50 per share was declared on October 30, 2024, payable on November 15, 2024[350]. - The company aims to repurchase shares to offset dilution from share-based incentive compensation plans over time[346]. Risk Management - The company has implemented a framework to monitor and manage operational risk, including internal controls and timely information provision[399]. - Business continuity and disaster recovery programs are in place to ensure service provision during disruptions[399]. - The company purchases insurance policies to protect against accidental losses that could significantly impact financial objectives[399].

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