Moelis Q2 adjusted revenue rises driven by higher average fees

Overview

• Investment bank's Q2 adjusted revenue rose 12% yr/yr, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations

• Revenue growth driven by higher average fees per completed transaction

Outlook

• Company expects continued expansion of advisory capabilities with additional Managing Directors joining this year

• Moelis sees strong client engagement and momentum in transaction activity

Result Drivers

• HIGHER FEES - Revenue growth driven by higher average fees per completed transaction

• EXPANDED HEADCOUNT - Compensation and benefits expenses increased due to higher headcount

• BUSINESS EXPANSION COSTS - Non-compensation expenses rose due to increased deal-related travel, new office space, professional fees, and technology investments

Company press release: ID:nBw8ZpxLca

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the investment banking brokerage services peer group is "buy."

• Wall Street's median 12-month price target for Moelis Co is $71.00, about 3.5% above its July 28 closing price of $68.59

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

• July 29 - Evercore beats Q2 revenue, adjusted EPS estimates

• July 28 - Barclays bolsters Asia investment banking team in push for fee growth

• July 28 - Huron Consulting Q2 revenue before reimbursable expenses rises 16%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)