Evercore to Report Q2 Earnings: What's in Store for the Stock?

Core Insights - Evercore Inc. (EVR) is expected to report second-quarter 2025 results on July 30, 2025, with a consensus estimate for sales at $713 million, reflecting a 2.5% year-over-year increase [1] - The earnings consensus estimate remains unchanged at $1.78 per share, indicating a 1.7% decline from the prior-year quarter [2] - Evercore has a strong earnings surprise history, having outperformed the Zacks Consensus Estimate in the last four quarters with an average beat of 37.35% [2] Investment Banking & Equities - Global mergers and acquisitions activity in Q2 2025 was stronger than anticipated, although advisory fees are expected to decline by 1.9% year-over-year to $557.3 million [3][4] - The IPO market saw a significant rebound, leading to an expected 10% increase in underwriting fees to $34.1 million compared to the prior-year quarter [5][6] - High trading volumes due to market volatility are likely to have improved commission and related fees, with a consensus estimate of $56.92 million, suggesting a 6.9% increase year-over-year [6] Asset Management - Favorable market conditions and sustained client inflows are expected to result in a 20.9% year-over-year increase in asset management and administration fees, with a consensus estimate of $22.25 billion [7] Expenses - Company expenses are anticipated to rise in Q2 2025 due to increased employee compensation and benefits costs [7] Earnings Outlook - The model indicates a high probability of Evercore beating estimates, supported by a positive Earnings ESP of +4.79% and a Zacks Rank of 1 (Strong Buy) [8][9] - Key factors contributing to potential earnings growth include increased AUM, a rebound in IPOs, and strong trading volumes, although higher compensation expenses may pressure profitability [8]