Lazard shares edge up as record adjusted revenue beats estimates

NEW YORK - On Thursday, Lazard, Inc. (NYSE:LAZ) reported third-quarter adjusted earnings that exceeded analyst expectations, driven by record firmwide adjusted net revenue and strong performance in both its Financial Advisory and Asset Management segments.

The investment bank’s shares gained 1.97% in pre-market trading after the release.

The company reported adjusted earnings per share of $0.56 for the third quarter, significantly beating the analyst consensus of $0.44. Revenue came in at $748 million, surpassing estimates of $717.67 million, while adjusted net revenue reached a record $725 million, up 12% YoY.

Financial Advisory revenue showed particular strength, rising 14% from the same period last year on an adjusted basis to $422 million. Meanwhile, Asset Management adjusted net revenue grew 8% YoY to $294 million, supported by record inflows for the quarter and assets under management that increased 17% year-to-date to $265 billion.

"Lazard’s long-term growth strategy continues to build momentum and produce results, with record Financial Advisory revenue and record Asset Management inflows year-to-date," said Peter R. Orszag, CEO and Chairman. "We see an increasingly constructive environment for both of our businesses, with substantial client engagement firmwide."

The company maintained its adjusted compensation ratio at 65.5%, consistent with the previous quarter, while its adjusted non-compensation ratio improved to 20.5% from 21.4% in the third quarter of 2024.

During the quarter, Lazard returned $60 million to shareholders through dividends and share repurchases. The company also declared a quarterly dividend of $0.50 per share, payable on November 14.

Looking ahead, management expressed optimism about the firm’s positioning, noting that they expect to welcome Chris Hogbin as the new CEO of Asset Management later this year to "further accelerate progress toward our vision for the future of Lazard."

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