Investment banking firm Moelis & Company (NYSE: MC) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
Moelis missed analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $376 million, up 33.9% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but .
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 be flat year on year at $442.2 million, slowing from the 104% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.83 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 missed Wall Street’s revenue estimates twice over the last two years.
Looking at Moelis’s peers in the investment banking & brokerage segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Lazard delivered year-on-year revenue growth of 9.8%, beating analysts’ expectations by 9.5%, and Jefferies reported revenues up 5.7%, topping estimates by 3%. Lazard traded up 2.1% following the results while Jefferies was down 5.6%.
Read our full analysis of Lazard’s results here and Jefferies’s results here.
Investors in the investment banking & brokerage segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. Moelis is down 3.9% during the same time and is heading into earnings with an average analyst price target of $79.30 (compared to the current share price of $71.64).
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