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Lazard Inc.’s LAZ fourth-quarter 2024 adjusted earnings per share of 78 cents topped the Zacks Consensus Estimate of 51 cents. This compared favorably with earnings of 66 cents in the year-ago quarter.
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Lazard’s results were positively impacted by increases in revenues in the financial advisory, asset management and Corporate segments. A decline in expenses was added positive. However, the lower assets under management (AUM) balance acted as a spoilsport.
Shares of the company rose 4.6% following the release of its fourth-quarter 2024 results.
Lazard’s net income (GAAP) was $86.3 million, which increased 36% from the prior-year quarter.
In 2024, earnings of $2.34 per share topped the consensus estimate of $2.06. The metric rose from 77 cents in 2023. Net income was $279.9 million in 2024 against negative net income of $75.5 million in the prior year.
Lazard’s Revenues Increase Y/Y
Quarterly operating revenues were $812.4 million, which rose 7% year over year. Also, the top line surpassed the Zacks Consensus Estimate by 9.9%.
For 2024, operating revenue was $2.89 billion, which topped the Zacks Consensus Estimate by 2.5%. Also, the top line rose 18% year over year.
Lazard’s Expenses Down
Operating expenses were $709.8 million, down 3% year over year.
The ratio of adjusted compensation expenses to operating revenues was 65.6%, down from the year-earlier quarter’s 67.8%. The ratio of adjusted non-compensation expenses to operating revenues was 19%, down from the year-ago quarter’s 19.5%.
Lazard’s Segmental Performance
Financial Advisory: The segment’s adjusted operating revenues were $507.7 million, rising 6% from the year-earlier quarter.
Asset Management: Segmental adjusted operating revenues of $287.2 million increased 5% from the prior-year quarter.
Corporate: Adjusted operating revenues from this segment were $17.6 million, up 77% from the year-earlier quarter.
LAZ’s AUM Declines
As of Dec. 31, 2024, the total AUM was $226.3 billion, which decreased 8.2% from $246.7 in the prior-year quarter.
The quarter witnessed a foreign exchange appreciation of $11.3 billion and net outflows of $10.1 billion.
The average AUM in the reported quarter was $233.8 billion, down 0.1% year over year.
Lazard’s Balance Sheet Position Strong
The company’s cash and cash equivalents totaled $1.3 billion as of Dec. 31, 2024, marginally up from the prior-year quarter. Stockholders’ equity was $685.2 million, up 0.7% sequentially.
LAZ’s Share Repurchase Update
In the reported quarter, Lazard repurchased $16 million worth of its common shares.