NEW YORK - Evercore Inc. (NYSE: EVR), a premier global independent investment banking advisory firm, reported a slight increase in net revenues for the first quarter of 2024, with figures reaching $580.8 million on a U.S. GAAP basis and $587.3 million on an adjusted basis. This represents a 2% rise from the first quarter of 2023 for both GAAP and adjusted revenues.
Despite the revenue growth, operating income for the quarter fell to $84.1 million from $106.9 million in the previous year, according to U.S. GAAP measures. Adjusted operating income also saw a decrease to $90.6 million from $115.5 million year-over-year. Net income attributable to Evercore Inc. was $85.7 million, a slight increase from $83.4 million in the first quarter of 2023.
Diluted earnings per share for the quarter were reported at $2.09, up from $2.06 in the same period last year. The compensation ratio, which reflects employee compensation and benefits as a percentage of net revenues, rose to 66.8% from 64.1% year-over-year. The operating margin decreased to 14.5% from 18.7%.
Evercore's advisory segment experienced a 7% decline in fees, which the company attributes to a decrease in revenue earned from large transactions. However, underwriting fees saw a significant increase of 143% due to a higher number of transactions in which the firm participated.
The first quarter also marked a strong period for Evercore's underwriting business, which achieved its highest quarterly revenue since the fourth quarter of 2021. This was attributed to increased activity levels in the equity capital markets, particularly among initial public offerings (IPOs).
In terms of capital return, Evercore increased its quarterly dividend by 5% to $0.80 per share and returned $308.5 million to shareholders through dividends and repurchases of 1.5 million shares.
The company's investment management segment reported an 18% increase in assets under management, which stood at $12.999 billion as of March 31, 2024. This growth was primarily due to market appreciation.
Evercore advised on several notable transactions during the quarter, including General Electric (NYSE:GE)'s $37 billion spin-off of GE Vernova and Synopsys (NASDAQ:SNPS)' acquisition of Ansys (NASDAQ:ANSS) for $35 billion.
Headcount at Evercore increased to approximately 2,225 employees worldwide as of March 31, 2024, up from 2,135 in the previous year. The firm also welcomed new senior managing directors across various divisions.
The information in this article is based on a press release statement issued by Evercore Inc.
InvestingPro Insights
Evercore Inc. (NYSE: EVR) has shown resilience in its financial performance despite the fluctuating market conditions. According to real-time data from InvestingPro, the company's market capitalization stands at $7.61 billion USD, reflecting investor confidence in its business model and market position.
InvestingPro Tips highlight Evercore's commitment to shareholder returns, with the firm having raised its dividend for 17 consecutive years and maintained dividend payments for 18 years. This consistent return to shareholders is indicative of Evercore's stable financial health and management's confidence in the company's future prospects. Additionally, four analysts have revised their earnings upwards for the upcoming period, suggesting positive sentiment around Evercore's financial outlook.
From a valuation perspective, Evercore's Price/Earnings (P/E) ratio is currently at 29.42, with the adjusted P/E ratio for the last twelve months as of Q4 2023 standing at 29.47. The Price to Book (P/B) ratio is at 5.39, which is considered high, reflecting the market's valuation of the company's assets relative to its stock price.
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