Lazard Profit More Than Triples as Advisory Fees Increase

Updated on

Lazard Ltd., the largest independent merger adviser, said second-quarter profit more than tripled as revenue from advisory and asset-management businesses climbed.

Net income rose to $374 million, or $2.82 share, from $85 million, or 64 cents, a year earlier, the Bermuda-based company said Thursday in a statement. Excluding a one-time tax benefit, profit was 98 cents a share, beating the 77-cent average estimate of 11 analysts surveyed by Bloomberg.

Lazard generates about half its revenue from managing assets and the rest from advising on mergers and acquisitions, which are on pace to reach a record volume this year globally. The firm, led by Chief Executive Officer Ken Jacobs, is also known for advising countries in turmoil, including Greece.

“The market is characterized by some of the most important companies doing important and very strategic deals,” Jacobs said in a phone interview. “We’re going to see that for a while going forward, particularly in the United States.”

Total adjusted revenue climbed 6.2 percent to $606.6 million from a year earlier, led by a 17 percent increase in M&A advisory fees and a 12 percent advance in strategic advisory, according to the statement. Asset-management revenue rose 2 percent to $290.1 million, the firm said.

Lazard shares gained 16 percent this year through Wednesday in New York. The firm has worked on some of the year’s largest deals. It was sole adviser to H.J. Heinz on the merger with Kraft Foods Group Inc., and advised Mylan NV on its more than $30 billion offer to buy Perrigo Co.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE