Investment banking firm Moelis & Company (NYSE: MC) will be announcing earnings results this Wednesday after market close. Here’s what you need to know.
Moelis beat analysts’ revenue expectations by 17.5% last quarter, reporting revenues of $365.4 million, up 38.1% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
Is Moelis a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Moelis’s revenue to grow 38.6% year on year to $389.1 million, improving from the 1.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Moelis has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 10.2% on average.
Looking at Moelis’s peers in the investment banking & brokerage segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Jefferies delivered year-on-year revenue growth of 21.6%, beating analysts’ expectations by 8.4%, and Morgan Stanley reported revenues up 18.5%, topping estimates by 9.2%. Jefferies traded down 1.9% following the results while Morgan Stanley was up 3%.
Read our full analysis of Jefferies’s results here and Morgan Stanley’s results here.
Investors in the investment banking & brokerage segment have had steady hands going into earnings, with share prices flat over the last month. Moelis is up 1% during the same time and is heading into earnings with an average analyst price target of $78 (compared to the current share price of $72.99).
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