Investment banking firm Moelis & Company (NYSE: MC) will be reporting results this Wednesday afternoon. Here’s what to look for.
Moelis beat analysts’ revenue expectations last quarter, reporting revenues of $487.9 million, up 11.2% 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, the market is expecting Moelis’s revenue to grow 4.4% year on year, slowing from the 41% increase it recorded in the same quarter last year.
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 missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Moelis’s peers in the investment banking & brokerage segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Morgan Stanley delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 4%, and Goldman Sachs reported revenues up 14.4%, topping estimates by 1%. Morgan Stanley traded up 2.2% following the results while Goldman Sachs’s stock price was unchanged.
Read our full analysis of Morgan Stanley’s results here and Goldman Sachs’s results here.
There has been positive sentiment among investors in the investment banking & brokerage segment, with share prices up 13% on average over the last month. Moelis is up 28% during the same time and is heading into earnings with an average analyst price target of $69.20 (compared to the current share price of $70.29).
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
