Greenhill Tumbles as Profit, Revenue Miss Analysts’ EstimatesSonali Basak
Greenhill & Co., the takeover adviser founded by former Morgan Stanley banker Robert Greenhill, fell the most in eight months after profit and revenue missed analysts’ estimates.
Greenhill slid 6.1 percent to $35.89 at 11:32 a.m. in New York, the most since May 15 and the third-worst performance in the 122-company Standard & Poor’s 600 Financials Index. Fourth-quarter net income dropped 3.5 percent to $15.2 million, or 51 cents a share, from a year earlier, the New York-based firm said Wednesday in a statement, missing the 62-cent average estimate of 11 analysts surveyed by Bloomberg.
Greenhill’s results were “surprising given a seemingly favorable backdrop for M&A,” David Trone, an analyst with MKM Partners LLC, said in a note Thursday, referring to mergers and acquisitions. “Why Greenhill didn’t do better is hard to say over such a short-term period.”
Advisory revenue, which makes up almost all of Greenhill’s sales, rose 1.2 percent to $76.3 million, the firm said. Trone said he expected $105.5 million.