Moelis Climbs Most Since IPO After Profit Beats Estimates

  • Ken Moelis’s firm had record revenues in year’s first half
  • Analyst says investment bank has been taking market share

Moelis & Co., the firm founded by Wall Street veteran Ken Moelis, surged the most since its 2014 initial public offering after profit beat analysts’ estimates.

Moelis climbed 7.3 percent to $26.45 at 4:15 p.m. in New York. The company said late Wednesday that operating profit was 35 cents a share, beating by 6 cents the average estimate of eight analysts surveyed by Bloomberg.

Ken Moelis said his New York-based firm recorded record revenue in the first half of the year. The company and its rivals have been reassuring shareholders that the market for mergers and acquisitions remains active after their stocks declined on concerns that the planned U.K. exit from the European Union would stunt the demand for corporate takeovers. Moelis has also been preparing for more restructuring opportunities, and has built a team focused on private fund placement to diversify revenue.

“We continue to expect growth in our underlying business,” Ken Moelis said Wednesday on a conference call with analysts. “Our outlook remains positive, our M&A dialog remains healthy, our restructuring activity is growing and our internal talent has developed to serve a growing client base.”

Moelis has been taking market share, Devin Ryan, of JMP Securities, said in a note to clients Thursday. He and Sandler O’Neill & Partners analyst Jeffery Harte also applauded the firm’s ability to limit expenses.

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