Moelis & Company (NYSE:MC – Get Free Report) posted its earnings results on Thursday. The asset manager reported $0.75 earnings per share for the quarter, beating analysts’ consensus estimates of $0.72 by $0.03, FiscalAI reports. The business had revenue of $425.58 million during the quarter, compared to analyst estimates of $434.17 million. Moelis & Company had a return on equity of 39.59% and a net margin of 14.50%. The company’s quarterly revenue was up 19.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.68 EPS.
Here are the key takeaways from Moelis & Company’s conference call:
- Third-quarter revenue rose 13% to $426 million, led by 40% growth in M&A and strong capital structure advisory results. Nine-month revenue reached a record $1.15 billion, up 10% year over year, with record average fees per completed transaction.
- New business origination and announced pipeline were up approximately 20% year over year, while total pipeline reached a record high. Management said underlying M&A demand remains strong, though market volatility could affect when assignments close.
- Adjusted non-compensation expenses rose 19% year to date, and the firm expects approximately 19% growth for the full year, citing technology and AI investment, office costs, and higher business activity. Adjusted third-quarter pre-tax margin was 21.4%, down from 22.2% a year earlier, although management still expects some compensation-ratio leverage by year-end.
- Capital markets revenue softened in the quarter after a record first half, as volatility delayed transaction timing; completions remain dependent on market conditions despite record pipeline levels. Executives also flagged risks from higher rates, geopolitical uncertainty, and potential disruption to AI-related financing and investment.
- Moelis is expanding its platform, including its private capital advisory business, and reported a roughly 30% increase in the number of sponsor transactions it advised on during the first nine months. It has hired 24 managing directors year to date and returned approximately $318 million to shareholders for the first nine months.
Moelis & Company Price Performance
NYSE MC traded down $1.69 during trading on Friday, reaching $56.69. The company’s stock had a trading volume of 1,479,972 shares, compared to its average volume of 1,098,888. The stock has a market capitalization of $4.44 billion, a PE ratio of 19.28, a P/E/G ratio of 2.57 and a beta of 1.87. The firm has a fifty day moving average of $59.35 and a 200 day moving average of $63.68. Moelis & Company has a one year low of $51.06 and a one year high of $78.22.
Moelis & Company Dividend Announcement
The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Monday, November 16th will be given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 4.6%. The ex-dividend date is Monday, November 16th. Moelis & Company’s payout ratio is presently 90.59%.
Key Headlines Impacting Moelis & Company
Here are the key news stories impacting Moelis & Company this week:
- Positive Sentiment: Moelis reported Q3 EPS of $0.75, above the $0.72 consensus estimate, while revenue increased 19.2% year over year. Moelis Q3 Earnings Beat Estimates
- Positive Sentiment: Management said its pipeline was up about 20% year over year, a potential signal of stronger future advisory activity and revenue. Moelis pipeline and expense outlook
- Positive Sentiment: A valuation article estimates 31% upside to fair value, offering a bullish view on the shares; this is an external valuation assessment, not company guidance. Moelis stock fair-value assessment
- Positive Sentiment: The company declared a regular quarterly dividend of $0.65 per share, equivalent to $2.60 annually and a stated yield of about 4.5%. Moelis Q3 results and dividend announcement
- Negative Sentiment: Q3 revenue of $425.58 million missed analysts’ $434.17 million estimate, a shortfall that may offset the EPS beat. Moelis misses Q3 revenue estimates
- Negative Sentiment: Moelis expects full-year non-compensation expenses to rise 19%. Higher costs could constrain earnings or margins even as the pipeline grows. Moelis pipeline and expense outlook
Insider Buying and Selling at Moelis & Company
In other news, Director Kenneth Shropshire sold 1,881 shares of Moelis & Company stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $69.06, for a total transaction of $129,901.86. Following the completion of the sale, the director owned 7,633 shares in the company, valued at approximately $527,134.98. This trade represents a 19.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. 6.29% of the stock is currently owned by insiders.
Analyst Ratings Changes
A number of equities research analysts have recently issued reports on the stock. Weiss Ratings downgraded shares of Moelis & Company from a “hold (c+)” rating to a “hold (c)” rating in a report on Friday, October 16th. The Goldman Sachs Group cut their price objective on shares of Moelis & Company from $71.00 to $62.00 and set a “neutral” rating for the company in a research report on Thursday, October 1st. Morgan Stanley reduced their price objective on shares of Moelis & Company from $85.00 to $77.00 and set an “overweight” rating for the company in a research note on Thursday, October 8th. Wall Street Zen raised shares of Moelis & Company from a “sell” rating to a “hold” rating in a report on Saturday, August 1st. Finally, Zacks Research upgraded shares of Moelis & Company from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 14th. Two investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $68.83.
View Our Latest Analysis on Moelis & Company
Moelis & Company Company Profile
Moelis & Company (NYSE: MC) is an independent global investment bank that provides strategic and financial advisory services to corporations, financial sponsors, governments and other institutions. Its advisory platform focuses on mergers and acquisitions, recapitalizations, restructurings, capital raising and other complex corporate finance matters.
The firm advises clients across a range of industries, including technology, media and telecommunications; financial services; consumer and retail; energy and infrastructure; healthcare; and industrials.
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