Lazard Ltd (LAZ) Q3 2023 Earnings: A Detailed Overview
Lazard Ltd (NYSE:LAZ) reports Q3 2023 operating revenue of $532 million and net income of $10 million.
Asset Management AUM increased by 15% to $228 billion since Q3 2022.
The company returned $285 million in capital to shareholders year to date.
Lazard Ltd announces conversion to a C-Corporation.
On October 26, 2023, Lazard Ltd (NYSE:LAZ) released its Q3 and nine-month 2023 earnings report. The company reported an operating revenue of $532 million for Q3 2023, with a net income of $10 million, or $0.10 per share, diluted. For the first nine months of 2023, the net income was also $10 million, or $0.10 per share, diluted. On a U.S. GAAP basis, the net loss for the first nine months of 2023 was $139 million, or $1.60 per share, diluted.
Financial Performance and Challenges
Lazard Ltd (NYSE:LAZ) faced challenging conditions for M&A in Q3 2023, but the company views the market as poised for a recovery in the upcoming quarters. The company also reported solid performance in Asset Management and expects changes made in that business to contribute to future growth. The company's conversion to a C-Corporation is expected to attract a broader base of investors, enhance liquidity, and deliver long-term value for shareholders.
Financial Achievements and Highlights
Lazard Ltd (NYSE:LAZ) reported an increase in Asset Management AUM of 15% since Q3 2022, reaching $228 billion. The company also returned $285 million in capital to shareholders year to date. The company's Financial Advisory operating revenue was $261 million for Q3 2023, 42% lower than Q3 2022. For the first nine months of 2023, Financial Advisory operating revenue was $879 million, 30% lower than the same period in 2022.
Income Statement, Balance Sheet, Cash Flow Statement
Operating revenue for Q3 2023 was $532 million, and $1,679 million for the first nine months of 2023, 27% and 20% lower, respectively, from the comparable 2022 periods. The company's cash and cash equivalents as of September 30, 2023, were $653 million. Stockholders equity related to Lazards interests was $361 million.
Company's Performance Analysis
Despite challenging conditions for M&A, Lazard Ltd (NYSE:LAZ) has maintained solid performance in Asset Management and returned significant capital to shareholders. The company's conversion to a C-Corporation is expected to enhance liquidity and attract a broader base of investors.
Other Pertinent Details
Lazard Ltd (NYSE:LAZ) announced its intention to convert to a U.S. C-Corporation effective January 1, 2024. The conversion is expected to be non-taxable to Lazard and its shareholders and timing is subject to compliance with global regulatory requirements.
Explore the complete 8-K earnings release (here) from Lazard Ltd for further details.
This article first appeared on GuruFocus.
