Evercore Q3 Earnings Top Estimates, Revenues Cross $1B, Stock Falls

Core Insights - Evercore Inc. (EVR) reported third-quarter 2025 adjusted earnings per share (EPS) of $3.48, exceeding the Zacks Consensus Estimate of $3.01 and up from $2.04 in the prior-year quarter [1][9] - The company achieved record adjusted net revenues of $1.05 billion, a 41.6% increase year over year, driven by strong performance in Investment Banking and Equities [3][9] - Total expenses rose by 34.4% year over year to $822.7 million, impacting operating margins [3][9] Revenue and Expenses - Investment Banking & Equities segment net revenues increased by 41% year over year to $1.04 billion, primarily due to higher advisory fees and growth in commissions [4] - Investment Management segment net revenues were $22.7 million, up 5.8% from the prior-year quarter, but operating income decreased by 56.2% year over year [5] - The adjusted compensation ratio improved to 65% from 66% in the prior-year quarter, while the adjusted operating margin decreased to 21.8% from 28.9% [3] Balance Sheet and Liquidity - As of September 30, 2025, cash and cash equivalents stood at $851.9 million, with investment securities and certificates of deposit totaling $1.6 billion [6] - Current assets exceeded current liabilities by $2 billion, indicating a strong liquidity position [6] Capital Distribution - On October 28, 2025, the company declared a quarterly dividend of 84 cents per share, payable on December 12 to common stockholders of record as of November 28 [7] - In the reported quarter, Evercore repurchased 0.2 million shares at an average price of $329.8 [7] Market Reaction - Despite solid quarterly results, EVR shares fell by 9.1% in the trading session following the earnings report, likely due to broader market trends [2]