Trading up

27 April 2017 By Antony Currie Follow @AntonyMCurrie

Roger Altman’s Evercore trades at a higher multiple than rival Ken Jacobs’ firm due to faster M&A growth. But equity-market upheaval is hitting its trading business while Lazard’s asset-management unit is weathering industry changes far better. Its shares should reflect that.

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Lazard on April 27 reported first-quarter net income of $110 million. At 83 cents a share, earnings beat the consensus estimate of sell-side analysts of 79 cents a share. Revenue of $624 million was 23 percent higher than the same period last year and beat the consensus estimate of $605 million.

Evercore on April 26 reported first-quarter net income of $83.6 million, or $1.61 a share. After stripping out a tax benefit from a new accounting rule on stock-based compensation, earnings were $1.13 a share, which beat the consensus estimate of sell-side analysts by a penny. Revenue of $385 million was 49.5 percent higher than the same period last year and beat the consensus estimate of $369 million.

Moelis & Co on April 25 reported first-quarter net income of $39 million. At 46 cents a share after excluding a 7-cents-a-share tax benefit from a new accounting rule on stock-based compensation, earnings beat the consensus estimate of sell-side analysts of 43 cents a share. Revenue of $173 million was 37 percent higher than the same period last year and beat the consensus estimate of $148 million.

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