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Moelis & Company (MC) Q1 Earnings Beat as Revenues Rise Y/Y

·3 min read

Moelis & Company MC recorded first-quarter 2021 adjusted earnings per share of $1.02, surpassing the Zacks Consensus Estimate of 97 cents. Also, the bottom line improved from the year-ago quarter’s 45 cents per share.

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 $75.8 million or $1.00 per share, significantly up from $30.1 million or 44 cents per share recorded in the prior-year quarter.

Revenues Improve, Expenses Rise

Total revenues jumped 72% year over year to $263.9 million. Further, the top line outpaced the Zacks Consensus Estimate of $238.4 million.

Total operating expenses (adjusted basis) were $191.4 million, up 48% year over year. The rise was primarily due to an increase in compensation and benefits costs.

Other income was $3.2 million against other expenses of $1.7 million recorded in the prior-year quarter.

As of Mar 31, 2021, the company had cash and liquid investments of $227.7 million, with no debt or goodwill.

Capital Deployment Update

In the reported quarter, the company repurchased 1.4 million shares for $74.2 million.

Moreover, concurrent with the earnings release, it announced a special dividend (in addition to the regular quarterly dividend) of $2.00 per share. The dividend will be paid out on Jun 18 to shareholders of record as of May 10.

Our View

Moelis & Company’s global expansion initiatives, and solid merger and acquisition activities 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

Main Street Capital Corporation MAIN and FS KKR Capital Corp. FSK are scheduled to announce quarterly results on May 6 and May 10, respectively. Gladstone Investment Corporation GAIN is scheduled to announce the March-end quarter’s results on May 11.

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Gladstone Investment Corporation (GAIN) : 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

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