Moelis Reports Higher-Than-Expected Revenue, Falls Short on Earnings
April 28, 2023
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The company reported higher-than-expected revenue of $187.82 million, surpassing estimates by $1.22 million. However, Moelis ($NYSE:MC)’ GAAP earnings per share (EPS) of $0.05 fell short of expectations by $0.05. Headquartered in New York, Moelis & Company provides financial advisory services to corporations, institutions, and governments globally. The company offers advice on mergers and acquisitions, capital markets and restructuring, capital raising and strategic solutions, among other areas.
Market Price
However, their earnings fell short of analysts’ expectations. This was the second consecutive quarter in which MOELIS failed to meet analysts’ estimates for earnings per share. Investors remain concerned about the company’s future prospects despite the higher-than-expected revenue. Moelis_Reports_Higher-Than-Expected_Revenue_Falls_Short_on_Earnings”>Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Moelis. More…
| Total Revenues | Net Income | Net Margin |
| 985.3 | 150.34 | 15.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Moelis. More…
| Operations | Investing | Financing |
| 32.99 | -11.18 | -326.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Moelis. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.22k | 757.93 | 6.95 |
Key Ratios Snapshot
Some of the financial key ratios for Moelis are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.7% | 23.6% | 21.9% |
| FCF Margin | ROE | ROA |
| 2.7% | 30.9% | 11.1% |
Analysis
GoodWhale recently conducted an analysis of MOELIS’s fundamentals, and the results are quite promising. According to our Star Chart, MOELIS is strong in profitability and medium in asset, dividend, and growth. Moreover, MOELIS has a high health score of 8 out of 10 with regard to its cash-flows and debt, indicating that the company is capable of riding out any crisis safely without the risk of bankruptcy. After our analysis, we have classified MOELIS as a ‘rhino’, which means that the company has achieved moderate revenue or earnings growth. Given these positive fundamentals, MOELIS may be an attractive investment for a variety of investors. For example, value investors may be attracted to MOELIS’s strong profitability and medium dividend yields. On the other hand, growth investors may be interested in the company’s potential for future revenue and earnings growth. In either case, MOELIS is a solid investment for any portfolio. Moelis_Reports_Higher-Than-Expected_Revenue_Falls_Short_on_Earnings”>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 in MOELIS have seen mixed results, with the company’s GAAP EPS of $0.05 missing estimates by $0.05 and revenue of $187.82M beating estimates by $1.22M. Despite the revenue beat, the stock price moved down on the day, indicating investors were not wholly impressed with the results. Moving forward, investors will be watching for improvements to the bottom line and top line growth in order to make a long-term decision on the stock.
