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NEW YORK - On Wednesday, Evercore Inc. (NYSE:EVR) reported third quarter adjusted earnings that surpassed analyst expectations, driven by strong performance across its advisory businesses.
The investment banking advisory firm’s stock edged up 0.42% in pre-market trading following the announcement.
Evercore posted adjusted earnings per share of $3.48 for the third quarter, beating the analyst estimate of $3.23. Revenue reached a record $1.04 billion, significantly exceeding the consensus estimate of $936.61 million and representing a 42% increase compared to the same quarter last year.
The firm’s advisory fees, which make up the bulk of its revenue, surged 49% YoY to $883.7 million, reflecting an increase in revenue earned from large transactions. Commissions and related revenue rose 15% to $62.8 million, primarily due to higher trading commissions driven by increased trading volume and higher subscription fees.
"We continue to experience strong momentum across our businesses. We are optimistic about Evercore’s market position and remain focused on serving our clients as conditions evolve," said John S. Weinberg, Chairman and Chief Executive Officer.
The company’s operating margin improved to 21.8% on an adjusted basis, up from 18.2% in the same period last year. Evercore’s compensation ratio decreased to 65.0% from 66.0% in the prior year period.
Roger C. Altman, Founder and Senior Chairman, noted, "We achieved record third quarter results, with over $1.0 billion in net revenues in the quarter, continuing the strong performance from the first half and reinforcing the strength of our growing, diversified platform."
During the quarter, Evercore advised on several notable transactions, including Dayforce’s $12.3 billion sale to Thoma Bravo and CommScope’s sale of its Connectivity and Cable Solutions business to Amphenol for $10.5 billion.
The company declared a quarterly dividend of $0.84 per share, payable on December 12 to shareholders of record as of November 28.
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