Evercore (EVR) Q3 2024 earnings summary

Executive summary

• Adjusted net revenues for Q3 2024 reached $740 million, up 28% year-over-year, with GAAP net revenues at $734.2 million, reflecting strong advisory and underwriting fees and improved macroeconomic conditions.

• Net income attributable to Evercore Inc. rose 50% year-over-year to $78.4 million for Q3 2024, and for the nine months ended September 30, 2024, net income increased 38% to $237.8 million.

• The firm maintains a diversified business model, achieving #1 advisory revenues among independents and expanding sector and geographic coverage, notably in Europe and Paris.

• Strategic investments in talent and senior hires continue, with 145 investment banking SMDs globally as of Q3 2024.

• Returned $528.8 million to shareholders year-to-date via dividends and share repurchases.

Financial highlights

• Q3 2024 adjusted net revenues were $740 million, up 28% year-over-year; LTM Q3 2024 adjusted net revenues reached $2.81 billion.

• Adjusted operating income for Q3 2024 was $135 million, up 63% year-over-year; LTM adjusted operating income was $463 million.

• Adjusted EPS for Q3 2024 was $2.04, a 57% increase from Q3 2023; LTM adjusted diluted EPS was $8.00.

• Adjusted operating margin improved to 18.2% in Q3 2024 from 14.4% a year ago; LTM margin was 16.5%.

• Assets under management in wealth management reached $13.9 billion, up 23% year-over-year.

Outlook and guidance

• Management expects gradual improvement in margins and continued revenue growth, with strong activity across business lines and a more active M&A and IPO market anticipated in 2025.

• Ongoing hiring and ramping of SMDs are expected to drive near- and long-term revenue growth.

• Cautious optimism is expressed regarding the impact of the U.S. election, regulatory environment, and elevated interest rates on deal activity.