Moelis & Company MC shares gained 2.9% in after-hours trading following the release of its better-than-expected fourth-quarter and full-year 2024 results. Adjusted earnings for the quarter of $1.18 per share surpassed the Zacks Consensus Estimate of 46 cents by a huge margin. The bottom line improved from a loss of 6 cents per share in the prior-year quarter.

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Results benefited from a rise in revenues and other income. Also, the company had a solid liquidity position in the quarter. However, an increase in expenses was a headwind.

Net income (GAAP basis) was $99.8 million against a loss of $6.5 million in the prior-year quarter.

For 2024, adjusted earnings per share of $1.82 beat the consensus estimate of $1.09 and improved from a loss of 20 cents per share in the prior year. Net income (GAAP basis) was $151.5 million against a loss of $27.5 million in 2023.

MC’s Revenues Rise, Expenses Jump

Total revenues (GAAP basis) for the quarter grew substantially year over year to $438.7 million. This was driven by a rise in average fees earned per completed transaction across all products. Moreover, the top line surpassed the Zacks Consensus Estimate of $338.7 million.

For 2024, total revenues (GAAP basis) were $1.19 billion, up 40%. Also, the top line outpaced the Zacks Consensus Estimate of $1.10 billion.

Total operating expenses (GAAP basis) were $307.2 million, which jumped 37%. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimates for total operating expenses were $290.2 million.

Other income (GAAP basis) was $6 million in the reported quarter, up 17%. We had projected the metric to be $4 million.

As of Dec. 31, 2024, the company had cash and liquid investments of $560.4 million, with no debt or goodwill.

Dividend Hike Announced by MC

Moelis & Company announced a quarterly cash dividend of 65 cents per share, marking an 8% hike from the prior payout. The dividend will be paid out on March 27 to shareholders of record as of Feb. 18.

Our View on Moelis & Company

Moelis & Company’s global expansion initiatives and diverse operations across sectors and industries bode well. A solid rebound in capital markets activities will drive growth. However, rising expenses will continue to adversely impact the company’s financials.
 

Moelis & Company Price, Consensus and EPS Surprise

Moelis & Company price-consensus-eps-surprise-chart | Moelis & Company Quote

Currently, Moelis & Company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of MC’s Peers

Morgan Stanley’s MS fourth-quarter 2024 earnings of $2.22 per share handily outpaced the Zacks Consensus Estimate of $1.65. The bottom line also rose substantially from 85 cents in the prior-year quarter.

The company’s investment banking (IB) and trading business performance were solid. Further, wealth management business performance was impressive. A rise in net interest income was another tailwind for MS. Yet, higher non-interest expenses and provisions were the undermining factors.

The Goldman Sachs Group, Inc.’s GS fourth-quarter 2024  adjusted earnings per share of $11.95 surpassed the Zacks Consensus Estimate of $7.99. This compares favorably with $5.48 reported in the year-ago quarter.

Goldman’s results benefited from a strong performance in its IB business and a solid Asset & Wealth Management division. A decline in expenses was another positive. However, a rise in provisions remains a near-term concern.

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