Evercore(US:EVR)2025-02-05 11:45Financial 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]