Evercore Profit Beats Estimates as Advisory Revenue ClimbsLaura Marcinek
Evercore Partners Inc., the investment bank founded by former Deputy U.S. Treasury Secretary Roger Altman, raised its dividend and expanded stock buybacks after third-quarter profit more than doubled.
Net income advanced to $14 million, or 36 cents a share, from $5.3 million, or 17 cents, a year earlier, the New York-based firm said today in a statement. Earnings excluding certain items were 53 cents a share, surpassing the 43-cent average estimate of seven analysts surveyed by Bloomberg.
The worldwide pace of deals measured in dollars increased in the second and third quarters from the first three months of the year, according to data compiled by Bloomberg, and Chief Executive Officer Ralph Schlosstein said Evercore is gaining market share. Greenhill & Co., the independent advisory firm that reported third-quarter results last week, said revenue could increase this year from 2012 as that New York-based company boosts its share of fees.
“Our productivity per partner has gone up fairly consistently over the last three years in what has been essentially a flattish environment,” Schlosstein, 62, said on a conference call after results were announced. “Getting market share improvement from productivity enhancement is an encouraging thing.”
Evercore raised its quarterly dividend 14 percent to 25 cents a share and increased the amount of shares it could repurchase to as much as $250 million, according to the statement.
Adjusted net revenue from investment banking, which includes fees from advising clients, climbed 26 percent to $161.3 million in the third quarter from a year earlier, and 30 percent to $472 million in the first nine months.
During the quarter, Evercore’s investment-banking unit earned advisory fees from 136 clients, compared with 147 a year earlier, according to the statement. The firm said it collected fees of $1 million or more from 31 clients, versus 30 in the third quarter last year.
Evercore set aside $324.2 million for compensation costs in the first nine months, or 59 percent of adjusted net revenue, compared with $258.6 million, or 61 percent, in the same period last year.
The company said it took a $2.7 million impairment charge in the period after a decline in the fair value of its 68 percent stake in Evercore Pan Asset Management, according to the statement.
Evercore fell 0.4 percent to close at $49.57 in New York. The shares climbed 64 percent this year, outpacing the 24 percent advance of the 116-company Standard & Poor’s SmallCap Financials Index.