MOELIS Reports 79.7% Decrease in Q4 FY2022 Earnings to USD 20.1 Million

Earnings Overview

MOELIS ($NYSE:MC) reported their FY2022 Q4 earnings results on December 31, 2022, resulting in a total revenue of USD 20.1 million and a net income of USD 207.2 million. Comparing to the same period a year prior, these numbers represent a 79.7% decrease in revenue and 51.3% decrease in net income.

Transcripts Simplified

MOELIS reported $202 million in adjusted revenues for the fourth quarter and $970 million for the full year. Their compensation expense ratio for the full year was 63%, while their non-compensation expense ratio was 15.6%. For the first quarter, non-compensation expenses are expected to be in the $40 million range, excluding episodic transaction-related costs.

The pre-tax margin for the year was 22.5%, and the normalized corporate tax rate was approximately 27% with an effective tax rate of approximately 22%. The company will reveal a potential tax benefit later this month related to the vesting of RSUs and plans to return 100% of its excess capital to shareholders through a $0.60 per share dividend.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Moelis. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Moelis. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Moelis. More…

Key Ratios Snapshot

Some of the financial key ratios for Moelis are shown below. More…

Price History

On Wednesday, MOELIS reported its fourth quarter fiscal year 2022 earnings. As a result, its stock prices opened at $47.1 and closed at the same amount, down by 1.3% from the previous closing price of 47.7.

In addition, MOELIS has also warned of more financial difficulties in the coming months due to the ongoing pandemic and economic uncertainty. It will be interesting to see how the company can navigate these difficult times and still be able to return to profitability. In the meantime, investors are encouraged to monitor the company’s performance closely and make sure that their portfolios are not too heavily exposed to MOELIS’s stock. Live Quote…

Analysis

At GoodWhale, we have conducted an analysis of MOELIS‘s wellbeing. According to our Star Chart, MOELIS is strong in profitability, and medium in asset, dividend, and growth. Additionally, MOELIS has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable of paying off its debt and funding future operations. Based on this analysis, we classify MOELIS as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. As a rhino company, MOELIS may be attractive to value investors. These investors look for stocks that have strong fundamentals and are undervalued compared to their peers. Value investors are typically patient and prepared to wait for a return on their investment. They may also be drawn to MOELIS’s strong cashflow and debt health scores, which indicate stability and long-term potential. Additionally, MOELIS’s medium scores in asset and dividend make it an attractive choice for dividend investors. More…

Peers

The competition between Moelis & Co and its competitors – Computershare Ltd, Numis Corp PLC, and Evercore Inc – is intense. Each of these companies has their own unique set of services and financial strategies to offer, making the market especially competitive. The challenge for Moelis & Co is to differentiate itself from these competitors in order to remain successful.

– Computershare Ltd ($ASX:CPU)

Computershare Limited is a global financial services provider headquartered in Melbourne, Australia. The company provides a range of services for the investment, corporate and mortgage markets, including share registry and related services, corporate trust and loan agency services, corporate trust and loan agency services, corporate trust and loan agency services, mortgage servicing, and other related financial services. As of 2023, Computershare Ltd has a market capitalization of 14.36 billion and a Return on Equity of 10.47%. This is an impressive figure considering the size of the company and reflects its strong financial performance over the years. Computershare’s success can be attributed to its diversified portfolio of products and services, strong brand recognition, and reliable customer service.

– Numis Corp PLC ($LSE:NUM)

Numis Corp PLC is a British-based investment banking and corporate advisory firm that specializes in the areas of mergers and acquisitions, equity capital markets, and debt capital markets. As of 2023, the company has a market capitalization of 226.61 million pounds, which is indicative of the strong financial performance of the company. Additionally, Numis Corp PLC has an impressive Return on Equity (ROE) of 7.64%, which indicates that the company is efficiently utilizing its equity to generate returns.

– Evercore Inc ($NYSE:EVR)

Evercore Inc is an independent investment banking advisory firm, providing financial services and advice to some of the world’s largest corporations, institutional investors and governments. The company’s market cap as of 2023 is 4.95B, making it one of the most successful independent investment banking firms in the world. Additionally, its Return on Equity (ROE) is 44.1%, a testament to its successful financial performance and high returns on investments.

Summary

Investors should take note of Moelis & Company’s fourth quarter earnings results for FY2022, which showed total revenue of USD 20.1 million – a 79.7% decrease from the same period a year prior. Net income was also down 51.3% year-over-year. This decrease in revenue and net income suggests potential challenges in the company’s growth strategy, and investors should take these results into account when evaluating their holdings in the company. It is important to keep in mind that this decreased revenue and net income may be short-term issues and that Moelis may still have long-term potential, but investors should be aware of the current market situation before making any decisions.