Evercore Q4 Earnings & Revenues Beat Estimates, AUM Balance Rises

Core Insights - Evercore Inc. reported fourth-quarter 2024 adjusted earnings per share of $3.41, exceeding the Zacks Consensus Estimate of $2.90 and up from $2.02 in the prior-year quarter [1][2] - The company's total revenues for the fourth quarter reached $980.5 million, a 25% increase year over year, and surpassed the Zacks Consensus Estimate by 12.8% [4] - Net income attributable to common shareholders was $1.40 billion, reflecting a 69.7% increase from the previous year [2] Financial Performance - For the full year 2024, adjusted earnings per share were reported at $9.42, up from $6.46 in the prior year, with net income rising 48.1% to $3.78 billion [3] - Total expenses for the fourth quarter increased by 14.4% year over year to $762.7 million, primarily due to rising costs across all expense components [4] - The adjusted operating margin improved to 22.2%, compared to 15.7% in the prior-year quarter [5] Segment Performance - In the Investment Banking & Equities segment, net revenues increased by 24.5% year over year to $953.9 million, with operating income surging 85.2% to $208.1 million [6] - The Investment Management segment reported net revenues of $21.4 million, a 19.2% increase from the prior year, although operating income decreased by 16.3% [7] Balance Sheet and Liquidity - As of December 31, 2024, cash and cash equivalents stood at $873 million, with investment securities and certificates of deposit totaling $1.5 billion [8] - Current assets exceeded current liabilities by $1.8 billion, indicating a strong liquidity position [8] Capital Distribution - The company declared a quarterly dividend of 80 cents per share, payable on March 14, 2025, to stockholders of record as of February 28, 2025 [9] - In the reported quarter, Evercore repurchased 0.1 million shares at an average price of $264.91 [9] Strategic Outlook - Evercore's revenue growth is attributed to efforts in expanding its client base in advisory solutions, supported by a solid liquidity position [11] - However, the rising expense base may hinder bottom-line growth in the near term [11]