Why Is Evercore (EVR) Up 9% Since Last Earnings Report?

Core Viewpoint - Evercore's recent earnings report showed mixed results, with adjusted earnings per share missing estimates, while revenues increased year-over-year, indicating potential challenges ahead for the company [2][4]. Financial Performance - Adjusted earnings per share for Q1 2024 were $2.13, missing the Zacks Consensus Estimate of $2.20 and down from $2.16 a year ago [2] - Net income available to common shareholders was $85.7 million, reflecting a 2.8% increase from the previous year [3] - Total revenues for Q1 2024 were $585 million, missing the consensus estimate of $652.7 million but up 1.5% year-over-year [4] - Adjusted net revenues were $587.3 million, marking a 1.7% increase year-over-year [4] - Total expenses rose by 6.8% to $496.7 million, primarily due to increases in various expense components [5] Segment Performance - In the Investment Banking & Equities segment, net revenues increased by 1.2% year-over-year to $561.7 million, but operating income decreased by 23.3% to $78.9 million [6] - The Investment Management segment saw net revenues of $19.1 million, up 10.1% from the prior year, with operating income rising 27.7% to $5.2 million and AUM reaching $13 billion, an 18% increase year-over-year [6] Balance Sheet - As of March 31, 2024, cash and cash equivalents stood at $569.8 million, with investment securities and certificates of deposit totaling $865.3 million [7] - Current assets exceeded current liabilities by $1.5 billion [7] Shareholder Activities - In Q1 2024, Evercore repurchased 1.5 million shares at an average price of $177.04 [8] Market Sentiment - Estimates for Evercore have trended downward, with a consensus estimate shift of -21.43% [9][10] - The company currently holds a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [12] Industry Comparison - Evercore is part of the Zacks Financial - Investment Bank industry, where competitor Morgan Stanley reported revenues of $15.14 billion, a year-over-year increase of 4.3% [13] - Morgan Stanley's EPS for the same period was $2.02, compared to $1.70 a year ago, and it has a Zacks Rank of 1 (Strong Buy) [14]