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Evercore Stock Gains 2.6% as Q2 Earnings & Revenues Beat Estimates
ZACKSยท 2025-07-31 18:11
Core Insights - Evercore Inc. (EVR) reported a strong second-quarter 2025 performance, with adjusted EPS of $2.42, exceeding the Zacks Consensus Estimate of $1.78 and up from $1.81 in the prior year [1][10] - The company's net income attributable to common shareholders was $97.2 billion, reflecting a 31.7% increase year over year [2] Revenue and Expenses - Adjusted net revenues for Q2 2025 reached $838.9 million, surpassing the Zacks Consensus Estimate by 17.6% and increasing 20.7% year over year [3][10] - Total expenses rose 17.6% year over year to $683.4 million, driven by increases across most components, except for professional fees and other operating expenses [3] - The adjusted compensation ratio improved to 65.4%, down from 66% in the prior-year quarter [3] Segment Performance - In the Investment Banking & Equities segment, net revenues increased 21.2% year over year to $812.2 million, with operating income surging 40.8% to $145.9 million [5] - The Investment Management segment reported net revenues of $21.7 million, up 12.7% from the prior year, although operating income decreased by 3.5% [6] Balance Sheet Strength - As of June 30, 2025, Evercore had cash and cash equivalents of $617.3 million and investment securities totaling $1.1 billion, with current assets exceeding current liabilities by $1.6 billion [7] Capital Distribution Activities - The company declared a quarterly dividend of 84 cents per share, payable on September 12 to stockholders of record as of August 29 [8] - In the reported quarter, Evercore repurchased 0.2 million shares at an average price of $237.79 [8] Overall Performance and Outlook - The revenue growth was primarily driven by strong momentum in advisory solutions and revenues, supported by a solid liquidity position [11] - However, the rising expense base may hinder bottom-line growth in the near term [11]