Evercore (EVR) Q2 2024 earnings summary

Executive summary

• Achieved record second quarter adjusted net revenues of $695.3 million, up 38% year-over-year, driven by a 52% increase in advisory fees and strong performance in large transactions.

• Expanded investment banking team and SMDs by 25% since 2021, reaching 143 globally as of Q2 2024, with new hires in Paris and the U.S. to strengthen European and sector presence.

• Diversified revenue streams, with at least one-third of total revenue from non-M&A businesses over the past four years.

• Maintains a strong, liquid balance sheet and consistent capital return policy, including 17 consecutive years of dividend increases.

• Involved in three of the six largest global announced deals year-to-date, reflecting strong market positioning and industry recognition.

Financial highlights

• Q2 2024 adjusted net revenues: $695.3 million (up 38%); GAAP net revenues: $689.2 million.

• Adjusted operating income rose 80% to $114 million; GAAP operating income up 88%; adjusted EPS increased 89% to $1.81.

• Adjusted operating margin improved to 16.4% from 12.6% a year ago; GAAP margin 15.7%.

• Advisory fees in Q2 2024: $568.2 million (up 52%); underwriting fees: $31 million (down 19%); commissions: $53.2 million (up 6%).

• Asset management and administration fees: $21 million (up 16%); AUM in Wealth Management: $13.2 billion (up 7% YTD, 15% year-over-year).

Outlook and guidance

• Expect continued recovery in M&A and firm results through the rest of 2024 and into 2025, supported by strong pipelines and improving market conditions.

• Focused on expanding sector, geographic, and capability coverage, especially in fast-growing segments like biotech, fintech, and green tech.

• Ramping of 30+ new SMDs expected to drive near- and long-term revenue growth.

• Anticipate full-year non-comp expense ratio to be consistent with or better than pre-COVID levels.

• Tax rate for the third and fourth quarters expected to remain similar to recent historical rates.