U.S. markets closed
  • S&P 500

    4,395.26
    -23.89 (-0.54%)
     
  • Dow 30

    34,935.47
    -149.06 (-0.42%)
     
  • Nasdaq

    14,672.68
    -105.59 (-0.71%)
     
  • Russell 2000

    2,226.25
    -13.78 (-0.62%)
     
  • Crude Oil

    73.81
    +0.19 (+0.26%)
     
  • Gold

    1,816.90
    -18.90 (-1.03%)
     
  • Silver

    25.55
    -0.23 (-0.90%)
     
  • EUR/USD

    1.1871
    -0.0025 (-0.21%)
     
  • 10-Yr Bond

    1.2390
    -0.0300 (-2.36%)
     
  • GBP/USD

    1.3906
    -0.0051 (-0.37%)
     
  • USD/JPY

    109.6150
    +0.1540 (+0.14%)
     
  • BTC-USD

    41,485.66
    +1,659.96 (+4.17%)
     
  • CMC Crypto 200

    955.03
    +5.13 (+0.54%)
     
  • FTSE 100

    7,032.30
    -46.12 (-0.65%)
     
  • Nikkei 225

    27,283.59
    -498.83 (-1.80%)
     

Moelis & Company (MC) Beats on Q2 Earnings, Hikes Dividend

·2 min read

Moelis & Company MC recorded second-quarter 2021 adjusted earnings per share of $1.19, surpassing the Zacks Consensus Estimate of 82 cents. In the prior-year quarter, the company recorded a loss per share of 11 cents.

Results were driven by a substantial improvement in revenues. Moreover, the company had a solid liquidity position in the reported quarter. However, a rise in expenses was the undermining factor.

Net income (GAAP basis) was $93.2 million or $1.17 per share against a net loss of $9 million or 10 cents per share recorded in the prior-year quarter.

Revenues Improve Significantly, Expenses Rise

Total revenues jumped significantly year over year from $159.9 million to $360.9 million. The top line outpaced the Zacks Consensus Estimate of $268 million.

Total operating expenses (adjusted basis) were $242.7 million, up 37% year over year. The rise was due to an increase in both compensation and benefits costs, and non-compensation costs.

Other income was $2.8 million against other expenses of $3.3 million recorded in the prior-year quarter.

As of Jun 30, 2021, the company had cash and liquid investments of $280.7 million, with no debt or goodwill.

Capital Deployment Update

In the reported quarter, the company repurchased 0.4 million shares for $21.7 million. Its board of directors has authorized an additional $100 million worth of repurchase authorization.

Additionally, the company announced a hike in quarterly dividend to 60 cents per share. The dividend will be paid out on Sep 17 to shareholders of record as of Aug 2.

Our View

Moelis & Company’s global expansion initiatives along with diverse operations across sectors and industries bode well for the future. The company's enhanced capital deployments reflect a strong balance sheet.

Moelis & Company Price, Consensus and EPS Surprise

Moelis & Company Price, Consensus and EPS Surprise
Moelis & Company Price, Consensus and EPS Surprise

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

Currently, Moelis & Company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Release Dates of Other Finance Stocks

Raymond James Financial RJF is scheduled to announce the June-end quarter’s results on Jul 28. Main Street Capital Corporation MAIN and FS KKR Capital Corp. FSK are scheduled to announce quarterly results on Aug 5 and Aug 9, respectively.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Raymond James Financial, Inc. (RJF) : Free Stock Analysis Report

Main Street Capital Corporation (MAIN) : Free Stock Analysis Report

Moelis & Company (MC) : Free Stock Analysis Report

FS KKR Capital Corp. (FSK) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research