Bloomberg News

Moelis Results Beat Estimates on Record Advisory Revenue

July 30, 2014

Moelis & Co. (MC:US), the independent advisory firm whose shares have surged since it went public in April, reported second-quarter results that beat analysts’ estimates as revenue from advising on deals increased.

Net loss for the quarter was $60.6 million, compared with a profit of $21.1 million a year earlier, as the vesting of equity equity partners in connection with the initial public offering accelerated, thee New York-based company said today in a statement. Profit excluding one-time items was 42 cents a share, surpassing the 25-cent average estimate (MC:US) of nine analysts surveyed by Bloomberg.

Chief Executive Officer Ken Moelis, 56, a Wall Street veteran who founded the firm in 2007, took it public amid an increase in deal activity. The value of announced mergers and acquisitions worldwide climbed 95 percent to $1.3 trillion in the second quarter from a year earlier, according to data compiled by Bloomberg.

“In our first quarter as a public company, we achieved record second-quarter revenues and generated strong earnings growth,” Moelis said in the statement.

Moelis & Co. climbed 2.7 percent to $35 at 4:49 p.m. in extended trading in New York. Through the end of regular trading, the shares had gained 36 percent since April 15, when the firm raised $186.9 million (MC:US) in the first U.S. IPO for an investment bank since 2007.

Quarterly Dividend

Revenue increased 34 percent to a record $131.7 million, according to the statement. The company took a one-time charge of $99.1 million in the quarter related to its IPO. Net income, excluding the charge, was $33.9 million, the firm said.

Moelis declared a quarterly dividend of 20 cents a share, up from the 17 cents the firm had estimated when it went public.

Moelis has added five managing directors since the end of the first quarter, bringing the total to 92, Ken Moelis said on a conference call with analysts. The company expects to hire four to six managing directors in a typical year and has exceeded that pace in 2014, he said.

Larger rivals Lazard Ltd. (LAZ:US) and Evercore Partners Inc. reported profit last week that beat analysts’ estimates as advisory revenue increased. Greenhill & Co. (GHL:US) said July 28 that net income and revenue declined in the quarter from a year earlier, while telling analysts it expects deals set for completion in the second half to boost income.

To contact the reporter on this story: Craig Giammona in New York at cgiammona@bloomberg.net

To contact the editors responsible for this story: Peter Eichenbaum at peichenbaum@bloomberg.net Steven Crabill


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Companies Mentioned

  • MC
    (Moelis & Co)
    • $34.36 USD
    • 0.01
    • 0.03%
  • LAZ
    (Lazard Ltd)
    • $50.01 USD
    • 0.05
    • 0.1%
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