Greenhill Falls Most Since 2013 as Stalled Deals Hurt Profit

  • Profit falls to less than $1 million, missing estimates
  • Deals take longer to complete amid regulatory oversight

Greenhill & Co., the merger-advisory firm founded by ex-Morgan Stanley banker Robert Greenhill, fell the most since 2013 after third-quarter profit plunged amid delays in deals being completed.

The investment bank dropped $2.51, or 8.9 percent, to $25.83 at 4:15 p.m. in New York, extending the slump for the year to about 41 percent. Net income fell to $684,000, or 2 cents a share, from $19.9 million, or 66 cents, a year earlier, the New York-based company said in a statement Thursday after markets closed. Analysts had predicted 38 cents a share in a survey by Bloomberg.

The firm has been lagging behind rivals in a year where mergers and acquisitions are near a record pace. Chief Executive Officer Scott Bok told analysts Thursday that some deals that the firm helped arrange are delayed because of regulatory oversight, stalling fee income for the company. He said competitors may face the same constraints and that he still expects the transactions to be completed, helping results in the future.

“We would still characterize the year as disappointing, in aggregate and relative to peers,” Devin Ryan, an analyst with JMP Securities, said in a note to clients. “While we are encouraged that 2016 appears to be shaping up for a better start, we believe it will be difficult for shares to experience any meaningful traction until the company can demonstrate an acceleration in earnings from the currently depressed level.”

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