In This Article:
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Net Revenues (GAAP): $695 million for Q1 2025.
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Operating Income (GAAP): $111 million for Q1 2025.
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EPS (GAAP): $3.48 per share for Q1 2025.
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Adjusted Net Revenues: $700 million, a 19% increase year-over-year.
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Adjusted Operating Income: $116 million, a 28% increase year-over-year.
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Adjusted EPS: $3.49, a 64% increase year-over-year.
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Adjusted Operating Margin: 16.6%, up from 15.4% in the prior year period.
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Adjusted Advisory Fees: $557 million, a 29% increase year-over-year.
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Underwriting Revenues: $54 million, down 2% year-over-year.
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Commissions and Related Revenue: $55 million, a 14% increase year-over-year.
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Adjusted Asset Management and Administration Fees: $22 million, an 8% increase year-over-year.
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Adjusted Compensation Ratio: 65.7%, down 30 basis points from the prior year period.
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Non-Compensation Expenses: $124 million, up 14% year-over-year.
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Adjusted Tax Rate: Negative 39.7%, including a $78 million benefit related to RSUs.
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Cash and Investment Securities: Nearly $1.4 billion as of March 31, 2025.
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Capital Returned: $454 million through share repurchases and dividends.
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Dividend Declared: $0.84 per share, a 5% increase from the prior dividend.
Release Date: April 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Evercore Inc (NYSE:EVR) delivered strong year-over-year growth across nearly all areas, with more than 50% of total revenues from non-M&A sources.
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The company announced several significant transactions in the first quarter, including advising on Calpine's $29.1 billion sale of Constellation Energy.
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Evercore's private capital advisory group had a record first quarter, leading in GP-led continuation vehicles and achieving a record in LP secondaries.
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The equities franchise had its strongest first quarter since 2020, driven by market volatility and increased trading volumes.
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Evercore returned a record amount of capital to shareholders in the quarter, demonstrating a strong commitment to shareholder value.
Negative Points
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Heightened geopolitical and trade tensions have increased volatility in global financial and asset markets, impacting CEO and Board confidence levels.
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The broader transaction environment is affected by market complexity and uncertainty, leading to a cautious approach from clients.
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First quarter underwriting revenues were down 2% from the previous year, reflecting lower levels of follow-on activity.
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The adjusted compensation ratio for the first quarter was 65.7%, which may prove challenging to improve in the current environment.
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Non-compensation expenses increased by 14% year-over-year, driven by vendor rate increases and IT spend due to headcount growth.