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Moelis & Company's Q3 Earnings Top as Revenues Rise & Expenses Fall
Moelis & panyMoelis & pany(US:MC) ZACKSยท2024-10-24 13:56

Core Viewpoint - Moelis & Company reported a third-quarter 2024 adjusted EPS of 22 cents, exceeding the Zacks Consensus Estimate of 20 cents, and showing improvement from a loss of 15 cents per share in the prior year quarter [1] - The company's net income on a GAAP basis was $19.2 million, compared to a loss of $11.4 million in the same quarter last year [1] Financial Performance - Total revenues on a GAAP basis increased slightly year over year to $273.8 million, driven by a rise in M&A revenues, which offset a modest decline in non-M&A revenues, surpassing the Zacks Consensus Estimate of $269.6 million [2] - Total operating expenses on a GAAP basis decreased by 11.6% to $258.2 million, attributed to lower compensation and benefits costs as well as non-compensation expenses, while estimates for total operating expenses were $245.6 million [2] - Other income on a GAAP basis was $11.1 million, reflecting an 11.6% increase from the prior-year quarter [2] - As of September 30, 2024, the company held cash and liquid investments totaling $297.7 million, with no debt or goodwill [2] Strategic Outlook - Moelis & Company's global expansion initiatives and diverse operations across various sectors are seen as positive factors for future growth [3] - However, the company faces challenges from heightened geopolitical and macroeconomic uncertainties, along with rising expenses that may adversely affect financial performance [3] - Currently, Moelis & Company holds a Zacks Rank 4 (Sell) [3] Industry Performance - Morgan Stanley reported third-quarter 2024 earnings of $1.88 per share, exceeding the Zacks Consensus Estimate of $1.57, with solid performance in its investment banking business [4] - Goldman Sachs achieved an adjusted EPS of $8.40, surpassing the Zacks Consensus Estimate of $6.85, benefiting from strong investment banking and asset management performance [5]