Why Is Evercore (EVR) Up 17.8% Since Last Earnings Report?

Core Viewpoint - Evercore's recent earnings report shows strong performance with adjusted earnings per share surpassing estimates, driven by revenue growth in key segments, although rising expenses present a challenge [2][3][5]. Financial Performance - Adjusted earnings per share for Q3 2024 were $2.04, exceeding the Zacks Consensus Estimate of $1.95 and up from $1.30 in the prior year [2]. - Total revenues reached $738.4 million, beating the consensus estimate of $695.4 million, and reflecting a year-over-year increase of 28.6% [4]. - Adjusted net revenues were $739.5 million, up 28.4% year over year, while total expenses rose 24.1% to $612.2 million [5]. Segment Performance - Investment Banking & Equities segment saw net revenues increase by 29% year over year to $712.8 million, with operating income surging 59% to $116.4 million [8]. - Investment Management segment reported net revenues of $21.4 million, a 22% increase from the prior year, with operating income up 55.1% to $5.6 million [8]. Asset Management - Assets Under Management (AUM) stood at $13.9 billion as of September 30, 2024, marking a 23.2% increase year over year [9]. Balance Sheet - As of September 30, 2024, cash and cash equivalents were $533.1 million, with investment securities and certificates of deposit totaling $1.3 billion. Current assets exceeded current liabilities by $1.6 billion [10]. Capital Distribution - In the reported quarter, Evercore repurchased 0.4 million shares at an average price of $236.91 [11]. Market Outlook - Estimates for Evercore have trended downward recently, with a consensus estimate shift of -5.58% [12][13]. The stock currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [15]. Industry Comparison - Evercore operates within the Zacks Financial - Investment Bank industry, where competitor Goldman Sachs reported revenues of $12.7 billion, a year-over-year increase of 7.5% [16].