Greenhill & Co. (GHL), the advisory firm whose shares have underperformed larger rivals this year, rose the most in 30 months after reporting second-quarter profit that beat analysts’ estimates.
Greenhill climbed 10 percent to $49.68 at 9:53 a.m. in New York after rising as much as 13 percent, the most since January 2012. The shares were the best performer in the 117-company Standard & Poor’s Smallcap Financials Index.
Second-quarter profit fell 48 percent from a year earlier to $8.05 million, or 27 cents a share, as advisory revenue dropped 23 percent, the New York-based firm said yesterday in a statement. Chief Executive Officer Scott Bok said deals set for completion in the second half will boost income.
“The revenue outlook is improving, which should matter more than the reported results,” Jeff Harte, an analyst at Sandler O’Neill & Partners LP, wrote in a note to investors. Greenhill’s “visible advisory pipeline is finally beginning to pick up and management’s conference call tone was as positive as we have heard it in a couple of years.”
Greenhill has slumped 14 percent this year, compared with a 19 percent advance for competitors Lazard Ltd. and Evercore Partners Inc.’s 6 percent drop.
Lazard and Evercore both reported profit last week that beat analysts’ estimates as advisory revenue increased. The value of announced mergers and acquisitions worldwide was up 71 percent through June 30 compared with a year earlier, while the number of completed deals dropped 5.9 percent, according to data compiled by Bloomberg.
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