Greenhill & Co. (GHL), the advisory firm planning to add five to 10 managing directors this year, reported first-quarter profit that missed analysts’ estimates as revenue slumped.
Net income fell 16 percent to $13.6 million, or 45 cents a share, from $16.1 million, or 53 cents, a year earlier, the New York-based firm said today in a statement. The average estimate of seven analysts surveyed by Bloomberg was for 67 cents.
Greenhill, run by Chief Executive Officer Scott Bok, 53, has been adding managing directors in anticipation of a pickup in global merger and acquisition activity, which declined last year for the first time since 2009. The firm hired Citigroup Inc.’s Anne Eastep this year to focus on the insurance industry and Carl-Georg Bauer-Schlichtegroll to work with European financial companies in London.
“The data for M&A transactions globally shows a relatively weak level of activity for the first quarter, which has surprised many after a very strong quarter ending last year,” Bok said in the statement.
Total revenue fell 3.7 percent to $79.6 million from a year earlier. The average estimate of seven analysts surveyed by Bloomberg was for $98.3 million.
To contact the reporter on this story: Laura Marcinek in New York at email@example.com.