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].

If you thought our angle on this company was interesting, you may want to check out our idea room, The Value Lab . We focus on long-only value ideas of interest to us, where we try to find international mispriced equities and target a portfolio yield of about 4% . We've done really well for ourselves over the last 5 years, but it took getting our hands dirty in international markets. If you are a value-investor, serious about protecting your wealth, our gang could help broaden your horizons and give some in ...

Lazard Inc.’s (LAZ) third-quarter 2024 adjusted earnings per share of 38 cents missed the Zacks Consensus Estimate of 41 cents. This compared favorably with earnings of 10 cents in the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Lazard’s results were negatively impacted due to a rise in expenses and weak performance in the corporate segment. Nonetheless, an increase in revenues in the financial advisory and asset management segment, along with a rise in assets u ...

Lazard, Inc. (NYSE:LAZ) Q3 2024 Earnings Conference Call October 31, 2024 8:00 AM ET Company Participants Alexandra Deignan - Head of IR, Treasury & Corporate Sustainability Peter Orszag - CEO Mary Ann Betsch - CFO Evan Russo - CEO, Asset Management Conference Call Participants Brendan O'Brien - Wolfe Research Brennan Hawken - UBS Ryan Kenny - Morgan Stanley James Yaro - Goldman Sachs Devin Ryan - Citizens JMP Mike Brown - Wells Fargo Securities Aidan Hall - KBW Operator Good morning and welcome to Lazard's ...

LAZARD October 2024 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 ...

Lazard (LAZ) came out with quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.32%. A quarter ago, it was expected that this company would post earnings of $0.40 per share when it actually produced earnings of $0.52, delivering a surprise of 30%.Over the last four quarters, the company has surpassed ...

The market expects Lazard (LAZ) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on October 31, 2024, might help the stock move higher if these key numbers are b ...

Lazard, Inc. (LAZ) reported a preliminary asset under management (AUM) balance of $244.3 billion for August 2024, reflecting a marginal decrease from $246.1 billion as of July 31, 2024. LAZ's AUM Breakdown The fall in AUM balance was due to net outflows of $7.5 billion. This was partially offset by the market appreciation and a foreign exchange appreciation of $2.8 billion and $3 billion, respectively. In August, Lazard's equity assets decreased almost 1.8% from the prior month's level to $192.2 billion, wh ...

Lazard, Inc. (LAZ) reported a preliminary asset under management (AUM) balance of $246.1 billion for July 2024. This reflected a marginal increase from $244.7 billion as of Jun 30, 2024. The rise in AUM balance was driven by a market appreciation of $3.5 billion and a foreign exchange appreciation of $1.5 billion. These were partially offset by net outflows of $3.6 billion. In July, Lazard's equity assets increased almost 1% from the prior month's level to $192.2 billion, while fixedincome assets declined m ...