Earnings Review and Free Research Report: Moelis & Co.’s Revenue Jumped 13%; Adjusted EPS Surged 30%
Research Desk Line-up: New Mountain Finance Post Earnings Coverage
LONDON, UK / ACCESSWIRE / November 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Moelis & Co. (NYSE: MC), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=MC, following the Company's release of its third quarter fiscal 2017 operating results on October 25, 2017. The investment bank outperformed top and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Asset Management industry. Pro-TD has currently selected New Mountain Finance Corporation (NYSE: NMFC) for due-diligence and potential coverage as the Company announced on November 07, 2017, its financial results for Q3 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on New Mountain Finance when we publish it.
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Earnings Reviewed
Moelis & Co. earned revenues of $170.0 million in Q3 2017 compared to $150.7 million in Q3 2016, representing an increase of 13% on a y-o-y basis. The increase in revenues was primarily driven by continued growth in M&A as the Company earned higher average fees per completed transaction. The Company's revenue was ahead of analysts' estimates by $1.59 million.
For Q3 2017, Moelis & Co.'s total operating expenses on a GAAP basis were $130.2 million. On an adjusted basis, the Company's operating expenses were $129.1 million for the reported quarter compared to $109.9 million in the year-ago same period. The increase in operating expenses was associated with higher revenues, which drove increased compensation and benefits expenses, as well as higher non-compensation expenses.
During Q3 2017, Moelis & Co.'s compensation and benefits expenses on a GAAP basis were $99.7 million. The Company's adjusted compensation and benefits expenses were $98.6 million for the reported quarter compared to $87.4 million in the year-earlier same quarter. Adjusted compensation and benefits ratio was consistent at 58% of revenues in both the current and prior year's same periods. Moelis & Co.'s non-compensation expenses on a GAAP and adjusted basis were $30.5 million in Q3 2017 compared to $22.5 million in Q3 2016. The increase in non-compensation expenses primarily resulted from increased headcount and transaction-related charges associated with an increase in revenues.
For Q3 2017, Moelis & Co.'s other income on a GAAP and adjusted basis was $15.0 million compared yo $0.2 million in Q3 2016. In the reported quarter, the Company recorded a gain of $14.4 million related to its investment in Moelis Australia. The gain resulted from Moelis Australia's issuance of new shares in September 2017.
Moelis & Co. reported net income of $43.3 million, or $0.48 per diluted share, for Q3 2017 GAAP compared to $35.3 million, or $0.39 per diluted share, in Q3 2016. On an adjusted basis, the Company reported net income of $36.3 million, or $0.57 per diluted share, in Q3 2017 versus $25.7 million of net income, or $0.44 per diluted share, in the prior year's same period. The Company's earnings beat Wall Street's expectations of $0.42 per share.
Capital Management and Balance Sheet
As of September 30, 2017, Moelis & Co. had no debt or goodwill and held cash and liquid investments of $243.7 million. The Company expects diluted shares to increase in Q4 2017 by approximately 500,000 shares, assuming no change in average share price or other extraordinary share activity.
Stock Performance
On Tuesday, November 21, 2017, the stock closed the trading session at $46.90, rising 2.07% from its previous closing price of $45.95. A total volume of 288.78 thousand shares have exchanged hands. Moelis' stock price skyrocketed 21.19% in the last three months, 32.98% in the past six months, and 72.08% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 42.00%. The stock is trading at a PE ratio of 22.44 and has a dividend yield of 3.16%. At Tuesday's closing price, the stock's net capitalization stands at $2.49 billion.
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