Evercore Advances After Profit Beats Estimates: New York Mover
Evercore rose 6.2 percent to $27.24 at 10:36 a.m. in New York after advancing as much as 8.2 percent, the most intraday since Nov. 30. The shares fell 3.7 percent this year through yesterday.
Net income was $5.3 million, or 17 cents a share, up from $1.96 million, or 6 cents, in the year-earlier period, the New York-based firm said in a statement today. Earnings excluding certain items fell 13 percent to $17.3 million, or 40 cents a share, exceeding the 34-cent average estimate of six analysts surveyed by Bloomberg. Proforma revenue declined 8 percent to $149.2 million in the quarter, the company said.
Evercore, led by Chief Executive Officer Ralph Schlosstein, 61, is among firms advising MetroPCS Communications Inc. (PCS) on its $32.8 billion purchase of T-Mobile USA Inc. from Deutsche Telekom AG. (DTE) Evercore ranks 15th for financial advisers on global mergers and acquisitions this year, according to data compiled by Bloomberg. Altman, 66, said in July that Evercore has a “strong” backlog of deals.
“We remain confident that Evercore’s backlog compares favorably to its peers,” Devin Ryan, an analyst at Sandler O’Neill & Partners LP, said today in a note. “We continue to believe 2012 will represent a record year for advisory revenues and potentially earnings.”
Investment-banking adjusted revenue declined 7.3 percent to $128.2 million in the third quarter from the same period last year. Investment-management adjusted revenue fell 15 percent to $21 million.
The firm hasn’t booked a fee of more than $20 million this year and doesn’t expect to in the fourth quarter, Schlosstein said today on a conference call. That’s due to a lack of “giant deals,” Altman said. Full-year revenue is expected to exceed last year’s, Schlosstein said.
Evercore’s adjusted compensation expense in the third quarter was $89.3 million, or 60 percent of revenue, compared with $100.8 million, or 62 percent, a year earlier.
The firm added four senior managing directors in the quarter and will continue to hire “selectively, but steadily,” Altman said on the call.
“There continues to be a brain drain from the giant institutions to independent firms and we’re the particular beneficiary,” he said.
Evercore boosted its quarterly dividend 10 percent to 22 cents a share, payable on Dec. 14 to common shareholders of record as of Nov. 30, according to the statement.
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