Global M&A and Restructuring Activity - Worldwide M&A announced volumes during the first nine months of 2024 were up 16% compared with the first nine months of 2023, with annualized volume up 7% compared to 2023[109] - Global restructuring and special situations activity remained strong in Q3 2024, driven by elevated levels of liability management and balance sheet restructurings[110] Fund Placement Activity - Fund placement activity increased from a year ago but remained challenged due to macroeconomic conditions and investor selectivity[111] Q3 2024 Financial Performance - Total revenues for Q3 2024 were $326.3 million, a 17% increase compared to $278.4 million in Q3 2023[125] - Advisory fees for Q3 2024 were $283.8 million, up 16% from $244.1 million in Q3 2023[125] - Placement fees for Q3 2024 were $32.5 million, a 22% increase from $26.7 million in Q3 2023[125] - Net income attributable to PJT Partners Inc. for Q3 2024 was $22.2 million, a 27% increase from $17.4 million in Q3 2023[125] - Compensation and benefits expenses for Q3 2024 were $226.8 million, up 17% from $193.5 million in Q3 2023[125] - Total expenses for Q3 2024 were $276.9 million, a 17% increase from $235.8 million in Q3 2023[125] - Net income for Q3 2024 was $41.1 million, a 32% increase from $31.2 million in Q3 2023[125] - Total revenues for Q3 2024 were $326.3 million, a $48.0 million increase compared to $278.4 million in Q3 2023[126] - Advisory fees for Q3 2024 were $283.8 million, a $39.7 million increase compared to $244.1 million in Q3 2023, driven by private capital solutions revenues[126] - Placement fees for Q3 2024 were $32.5 million, a $5.8 million increase compared to $26.7 million in Q3 2023, due to higher fund placement revenues[126] - Expenses for Q3 2024 were $276.9 million, a $41.1 million increase compared to $235.8 million in Q3 2023, driven by higher compensation and benefits, occupancy, and other expenses[129] Nine Months Ended September 30, 2024 Financial Performance - Total revenues for the nine months ended September 30, 2024, were $1,015.9 million, a $191.3 million increase compared to $824.6 million in the same period in 2023[127] - Advisory fees for the nine months ended September 30, 2024, were $879.6 million, a $143.5 million increase compared to $736.0 million in the same period in 2023, driven by strategic advisory, restructuring, and private capital solutions revenues[128] - Placement fees for the nine months ended September 30, 2024, were $113.8 million, a $39.6 million increase compared to $74.3 million in the same period in 2023, due to a significant increase in fund placement revenues[128] Share Repurchase Program - The company repurchased 1.9 million shares of Class A common stock at an average price of $100.08 per share, totaling $185.5 million, under the share repurchase program[148] Cash and Investments - As of September 30, 2024, the company had cash, cash equivalents, and short-term investments of $477.0 million, compared to $436.9 million as of December 31, 2023[137] Employee Loans and Guarantees - The company's guarantee for employee loans was $2.0 million as of September 30, 2024, down from $2.3 million as of December 31, 2023[151] Tax Receivable Agreement Liabilities - The company's tax receivable agreement liabilities were $30.7 million as of September 30, 2024, up from $29.7 million as of December 31, 2023[153] Allowance for Credit Losses - The allowance for credit losses increased to $4.0 million as of September 30, 2024 from $2.4 million as of December 31, 2023[161] Foreign Currency Fluctuations - Foreign currency fluctuations resulted in a $2.7 million gain in Other Comprehensive Income for the nine months ended September 30, 2024, compared to a $0.5 million loss in the same period of 2023[163] - The company reported a $1.3 million loss in Interest Income and Other due to foreign currency fluctuations for the nine months ended September 30, 2024, compared to a $3.4 million loss in the same period of 2023[163]

Growth Stocks Overview - Growth stocks are attractive due to their above-average financial growth and potential for exceptional returns, but they carry higher risk and volatility [1] - Finding great growth stocks is challenging as betting on stocks with declining growth stories can lead to significant losses [1] Zacks Growth Style Score and PJT Partners - The Zacks Growth Style Score helps identify cutting-edge growth stocks by analyzing real growth prospects beyond traditional attributes [2] - PJT Partners is recommended by the Zacks system due to its favorable Growth Score and top Zacks Rank [2] - Stocks with a Growth Score of A or B and a Zacks Rank 1 or 2 consistently outperform the market [3] Key Growth Factors for PJT Partners Earnings Growth - Earnings growth is a critical factor for growth stocks, with double-digit growth indicating strong prospects [4] - PJT Partners' historical EPS growth rate is 4.7%, but its projected EPS growth for this year is 34.6%, significantly higher than the industry average of 15.3% [5] Cash Flow Growth - High cash flow growth is essential for growth-oriented companies to fund new projects without external financing [6] - PJT Partners' year-over-year cash flow growth is 38.1%, compared to the industry average of -22% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 14.9%, above the industry average of 10.7% [7] Earnings Estimate Revisions - Positive trends in earnings estimate revisions correlate with near-term stock price movements [8] - PJT Partners' current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 1.1% over the past month [9] Conclusion - PJT Partners' combination of a Zacks Rank 2 and a Growth Score of A positions it well for outperformance, making it an attractive option for growth investors [9][10]

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 likely to generate non-correlated and outsized returns [3] Company Performance - PJT Partners' restructuring franchise continues to perform well, and the Park Hill placement franchise is also noted for its performance [2] Services Offered - The Value Lab provides members with a portfolio featuring real-time updates, 24/7 chat support, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions [2]

Financial Data and Key Metrics - Q3 2024 revenues reached a record $326 million, up 17% YoY, with adjusted pretax income up 16% and adjusted EPS up 19% [6] - Nine-month revenues were $1.016 billion, up 23% YoY, with adjusted pretax income up 32% and adjusted EPS up 35% [6] - Compensation expense was 69.5% of revenues for the first nine months, consistent with full-year 2024 expectations [10] - Adjusted non-compensation expense was $49 million for Q3, up 19% YoY, and $138 million for the first nine months, up 14% YoY [11] - Adjusted pretax income was $51 million for Q3 and $172 million for the first nine months, with an effective tax rate of 21% [13] - Q3 adjusted EPS was $0.93, and nine-month adjusted EPS was $3.10 [14] - The company ended Q3 with $477 million in cash and cash equivalents and $491 million in net working capital, with no funded debt outstanding [16] Business Line Performance - PJT Park Hill revenues rebounded significantly, with year-to-date fundraising volumes more than double YoY, outperforming the broader primary fundraising market [18][19] - Restructuring revenues reached record levels, with 2024 expected to be another record year due to elevated restructuring activity and liability management [21][22] - Strategic advisory revenues were up solidly YoY for the nine months, with Q3 revenues up slightly, reflecting a slow recovery in the M&A market [23][24] - The company has 35% more strategic advisory partners with over two years of tenure compared to 2021, leading to higher win rates and a growing backlog of transactions [25] Market and Geographic Performance - The acquisition of deNovo Partners strengthens the company's presence in the Gulf region, combining deNovo's regional expertise with PJT's global advisory capabilities [7][17] - The company continues to expand its global reach and sees network benefits from its collaborative business model, delivering integrated advisory and capital raising services worldwide [26] Strategic Direction and Industry Competition - The company remains committed to investing in capabilities, industry expertise, and geographic expansion, with the acquisition of deNovo Partners being a key strategic move [6][7] - The restructuring cycle is expected to continue due to high interest rates, technological disruption, and changing consumer preferences, providing a tailwind for the restructuring business [22] - The M&A market is expected to recover more significantly in 2025, driven by rate cuts, open capital markets, and increased private equity activity [24][36] Management Commentary on Operating Environment and Outlook - Management is confident in the company's near, intermediate, and long-term growth prospects, citing a strong pipeline, increased client traction, and a favorable M&A backdrop [25][26] - The company expects strategic advisory revenues to grow meaningfully in excess of headcount in 2025, leading to improved compensation leverage [45][49] - The restructuring cycle is seen as multiyear, with continued demand for liability management and restructuring services [33][34] Other Important Information - The company closed the acquisition of deNovo Partners on October 1, 2024, enhancing its capabilities in the Gulf region [7][17] - The Board approved a dividend of $0.25 per share, payable on December 18, 2024, to shareholders of record as of December 4, 2024 [16] Q&A Session Summary Question: Capacity and productivity expectations for the strategic advisory business - The company does not manage to a specific revenue-per-partner metric due to varying factors such as macroeconomic conditions and franchise strength [29] - The firm has significantly improved its market presence and expects higher productivity in 2025 compared to previous cycles [30][31] Question: Pace of new restructuring mandates - The restructuring cycle is expected to be long-tailed, with no material change in the onboarding of new clients, and the company remains constructive on 2024 and beyond [33][34] Question: Confidence in a stronger M&A market in 2025 - Management cites rate cuts, open capital markets, and increased corporate appetite for M&A as key drivers for a stronger M&A environment in 2025 [36][37] - The company has a near-record mandate count and a growing backlog of announced transactions, positioning it well for 2025 [38] Question: Sponsor activity in the M&A market - Sponsor activity is expected to improve but is unlikely to return to the levels seen during the near-zero interest rate environment [39] Question: Leveraging Park Hill's sponsor relationships - The company leverages its strategic advisory and restructuring capabilities to build strong sponsor relationships, with Park Hill playing a key role in fund continuation services [40][41][42] Question: Compensation leverage and headcount growth - Strategic advisory revenues are expected to grow faster than headcount in 2025, leading to improved compensation leverage [45][49] Question: Park Hill's fundraising market outlook - Fund continuation vehicles are expected to remain a significant part of the market, with Park Hill benefiting from its differentiated approach to distribution and origination [51][52] Question: Structural changes in compensation ratios - The company is confident in its ability to return to a 64% compensation ratio, despite inflationary pressures at the junior level [54] Question: Capital allocation and acquisition strategy - The company prioritizes building a best-in-class firm and will consider acquisitions only if they are highly attractive and complementary to its existing business [56] Question: Impact of the deNovo acquisition - The deNovo acquisition is expected to have an immediate impact across all business lines, with long-term aspirations to establish a strong presence in the Middle East [58][59]

Earnings Performance - PJT Partners reported quarterly earnings of $0 93 per share, beating the Zacks Consensus Estimate of $0 74 per share, representing a 25 68% earnings surprise [1] - The company's earnings per share (EPS) increased from $0 78 per share a year ago [1] - Over the last four quarters, PJT Partners has surpassed consensus EPS estimates four times [2] Revenue Performance - PJT Partners posted revenues of $326 32 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 14 10% [2] - This compares to year-ago revenues of $278 36 million [2] - The company has topped consensus revenue estimates four times over the last four quarters [2] Stock Performance - PJT Partners shares have added about 38 5% since the beginning of the year, outperforming the S&P 500's gain of 22 1% [3] - The stock's immediate price movement will depend on management's commentary on the earnings call [3] Earnings Outlook - The current consensus EPS estimate is $1 43 on $412 million in revenues for the coming quarter and $4 35 on $1 39 billion in revenues for the current fiscal year [7] - The estimate revisions trend for PJT Partners is mixed, translating into a Zacks Rank 3 (Hold) [6] Industry Context - PJT Partners belongs to the Zacks Financial - Miscellaneous Services industry, which is currently in the bottom 43% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] Peer Comparison - Axos Financial (AX), another stock in the same industry, is expected to post quarterly earnings of $1 80 per share, representing a year-over-year change of +27 7% [9] - Axos Financial's revenues are expected to be $299 59 million, up 22% from the year-ago quarter [10] - The consensus EPS estimate for Axos Financial has been revised 0 4% lower over the last 30 days [9]

Revenue Growth - Record Third Quarter Revenues of $326 million, a 17% increase from a year ago[3] - Record year-to-date Revenues of $1.02 billion, a 23% increase from a year ago[3] - Total revenues for Q3 2024 were $326.3 million, a 17.2% increase compared to $278.4 million in Q3 2023[37] - Advisory Fees increased to $283.8 million, a 16% increase from the prior year[5] - Placement Fees increased to $32.5 million, a 22% increase from the prior year[5] - Interest Income & Other increased to $10.1 million, a 33% increase from the prior year[5] - Advisory fees for Q3 2024 were $283.8 million, up 16.2% from $244.1 million in Q3 2023[37] Income and Profitability - GAAP Pretax Income of $49 million and Adjusted Pretax Income of $51 million, both increased 16% from a year ago[3] - GAAP Diluted EPS of $0.79 and Adjusted EPS of $0.93, increases of 16% and 19%, respectively, from a year ago[3] - Net income attributable to PJT Partners Inc. for Q3 2024 was $22.2 million, a 27.2% increase from $17.4 million in Q3 2023[37] - Adjusted pretax income for Q3 2024 was $50.6 million, up 15.6% from $43.8 million in Q3 2023[39] - Adjusted net income for Q3 2024 was $42.1 million, a 29.0% increase from $32.6 million in Q3 2023[39] - Basic net income per share of Class A common stock for Q3 2024 was $0.87, compared to $0.69 in Q3 2023[37] - Diluted net income per share of Class A common stock for Q3 2024 was $0.79, compared to $0.68 in Q3 2023[37] - Adjusted net income, if-converted per share for Q3 2024 was $0.93, compared to $0.78 in Q3 2023[39] Share Repurchases and Equity - Repurchased 2.6 million share and share equivalents through September 30, 2024, with record open market repurchases of 1.9 million shares[3] - Weighted-average shares outstanding, if-converted for Q3 2024 were 44.5 million, up 7.5% from 41.4 million in Q3 2023[39] - Basic Shares Outstanding, GAAP for Q3 2024 was 25,372,621, compared to 25,193,359 in Q3 2023[44] - Diluted Shares Outstanding, GAAP for Q3 2024 increased to 44,642,704 from 26,644,324 in Q3 2023[44] - Fully-Diluted Shares Outstanding as of September 30, 2024, was 46,950,955, up from 44,457,247 in 2023[44] - The Company achieved a dividend adjusted 20-day volume-weighted average share price of over $129, with 2.5 million share equivalents included in the fully-diluted share count[44] - 1.0 million share equivalents had satisfied both service and market conditions, while 1.5 million are vesting under ongoing service conditions[44] - Dilutive Impact of Unvested RSUs for Q3 2024 was 3,437,914, compared to 1,450,965 in Q3 2023[44] - Dilutive Impact of Partnership Units for Q3 2024 was 15,832,169, with no comparable figure in Q3 2023[44] - If-Converted Shares Outstanding for Q3 2024 was 44,504,239, up from 41,409,625 in Q3 2023[44] - Partnership Units for Q3 2024 were 15,693,704, compared to 14,765,301 in Q3 2023[44] Cash and Investments - Record cash, cash equivalents and short-term investments of $477 million and no funded debt[3] Acquisitions and Expenses - Completed the acquisition of deNovo Partners on October 1, 2024[3] - Adjusted non-compensation expense for Q3 2024 was $48.9 million, up 19.0% from $41.1 million in Q3 2023[41] - The Company's tax adjustments include amortization of intangible assets from acquisitions and compensation-related tax deductions[46]

Earnings Expectations for PJT Partners - The market expects PJT Partners to report a year-over-year decline in earnings of 5.1% to $0.74 per share, while revenues are expected to increase by 2.7% to $286 million for the quarter ended September 2024 [2] - The consensus EPS estimate has been revised 1.42% higher over the last 30 days, reflecting analysts' reassessment of initial estimates [3] - The company has a Zacks Rank of 3 (Hold) and an Earnings ESP of 0%, making it difficult to predict an earnings beat [6][7] Historical Performance and Industry Comparison - PJT Partners has consistently beaten consensus EPS estimates over the last four quarters, including a significant surprise of +45.12% in the last reported quarter [8] - In the same industry, WisdomTree, Inc is expected to post earnings of $0.17 per share, representing a year-over-year increase of 70%, with revenues expected to grow 21.7% to $110.01 million [10] - WisdomTree, Inc has an Earnings ESP of 2.00% and a Zacks Rank of 3 (Hold), indicating a higher likelihood of beating consensus EPS estimates [10] Market Impact and Investor Considerations - The actual earnings results compared to estimates will likely influence PJT Partners' near-term stock price, with better-than-expected results potentially driving the stock higher [1] - Management's discussion of business conditions during the earnings call will be crucial in determining the sustainability of any immediate price change and future earnings expectations [1] - While an earnings beat or miss is not the sole basis for stock movement, betting on stocks expected to beat earnings expectations increases the odds of success [9]

Stock Performance - PJT Partners' stock has risen by 7.8% over the past month and hit a new 52-week high of $137.06 [1] - The stock has gained 32.9% since the start of the year, outperforming the Zacks Finance sector (17.1%) and the Zacks Financial - Miscellaneous Services industry (12.7%) [1] Earnings and Revenue - PJT Partners has consistently beaten earnings consensus estimates in the last four quarters, with the latest EPS of $1.19 surpassing the estimate of $0.82 [2] - Revenue in the last earnings report exceeded the consensus estimate by 16.19% [2] - For the current fiscal year, the company is expected to post earnings of $4.35 per share on $1.39 billion in revenues, representing a 33.03% increase in EPS and a 20.36% increase in revenue [3] - For the next fiscal year, earnings are expected to rise to $5.40 per share on $1.56 billion in revenues, reflecting year-over-year changes of 24.14% and 12.68%, respectively [3] Valuation Metrics - PJT Partners trades at 31.1X current fiscal year EPS estimates, a premium to the peer industry average of 11.7X [7] - On a trailing cash flow basis, the stock trades at 18.9X versus the peer group's average of 8.9X [7] - The company has a Value Score of B, Growth Score of A, and Momentum Score of D, resulting in a VGM Score of A [6] Zacks Rank and Style Scores - PJT Partners holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions [8] - The stock fits the criteria for investment with a Zacks Rank of 1 or 2 and Style Scores of A or B [8] Industry Comparison - StoneX Group Inc (SNEX), a peer in the industry, has a Zacks Rank of 2 (Buy) and a Value Score of A, Growth Score of A, and Momentum Score of F [9] - SNEX beat the consensus earnings estimate by 7.30% last quarter and is expected to post earnings of $7.40 per share on revenue of $3.33 billion for the current fiscal year [10] - SNEX shares have gained 2.5% over the past month and trade at a forward P/E of 11.3X and a P/CF of 8.1X [10] - The Financial - Miscellaneous Services industry is in the top 22% of all industries, indicating favorable conditions for both PJT and SNEX [11]

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all. That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss. However, it's pretty easy to find cutting-edge growth stocks with the help of the ...

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones involves significant risk and volatility [1] Group 1: Company Overview - PJT Partners is highlighted as a recommended growth stock with a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 8.8%, but projected EPS growth for this year is expected to be 33%, significantly higher than the industry average of 14.6% [5] Group 2: Financial Metrics - PJT Partners exhibits a year-over-year cash flow growth of 38.1%, which surpasses the industry average of -23.2% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 14.9%, compared to the industry average of 11.2% [7] Group 3: Earnings Estimates - The current-year earnings estimates for PJT Partners have been revised upward, with the Zacks Consensus Estimate increasing by 8.8% over the past month [9] - The combination of positive earnings estimate revisions and a Growth Score of B positions PJT Partners as a potential outperformer for growth investors [10][11]