Moelis & Company (NYSE:MC) Posts Earnings Results, Beats Expectations By $0.03 EPS

Moelis & Company (NYSE:MC) issued its quarterly earnings data on Thursday. The asset manager reported $0.75 EPS for the quarter, topping analysts’ consensus estimates of $0.72 by $0.03, FiscalAI reports. Moelis & Company had a net margin of 14.50% and a return on equity of 39.59%. The business had revenue of $425.58 million for the quarter, compared to analysts’ expectations of $434.17 million. During the same quarter last year, the company earned $0.68 EPS. The business’s revenue was up 19.2% on a year-over-year basis.

Here are the key takeaways from Moelis & Company’s conference call:

• Third-quarter revenue rose 13% to $426 million, led by 40% growth in M&A and strong capital structure advisory results. Nine-month revenue reached a record $1.15 billion, up 10% year over year, with record average fees per completed transaction.
• New business origination and announced pipeline were up approximately 20% year over year, while total pipeline reached a record high. Management said underlying M&A demand remains strong, though market volatility could affect when assignments close.
• Adjusted non-compensation expenses rose 19% year to date, and the firm expects approximately 19% growth for the full year, citing technology and AI investment, office costs, and higher business activity. Adjusted third-quarter pre-tax margin was 21.4%, down from 22.2% a year earlier, although management still expects some compensation-ratio leverage by year-end.
• Capital markets revenue softened in the quarter after a record first half, as volatility delayed transaction timing; completions remain dependent on market conditions despite record pipeline levels. Executives also flagged risks from higher rates, geopolitical uncertainty, and potential disruption to AI-related financing and investment.
• Moelis is expanding its platform, including its private capital advisory business, and reported a roughly 30% increase in the number of sponsor transactions it advised on during the first nine months. It has hired 24 managing directors year to date and returned approximately $318 million to shareholders for the first nine months.

Moelis & Company Stock Performance

Moelis & Company stock traded down $1.69 during trading on Friday, reaching $56.69. The company had a trading volume of 1,479,972 shares, compared to its average volume of 1,098,888. The firm has a market capitalization of $4.44 billion, a PE ratio of 19.28, a price-to-earnings-growth ratio of 2.57 and a beta of 1.87. The firm’s 50-day simple moving average is $59.35 and its 200 day simple moving average is $63.68. Moelis & Company has a 1-year low of $51.06 and a 1-year high of $78.22.

Moelis & Company Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 17th. Investors of record on Monday, November 16th will be paid a $0.65 dividend. The ex-dividend date of this dividend is Monday, November 16th. This represents a $2.60 dividend on an annualized basis and a yield of 4.6%. Moelis & Company’s dividend payout ratio (DPR) is currently 90.59%.

Moelis & Company News Summary

Here are the key news stories impacting Moelis & Company this week:

• Positive Sentiment: Moelis reported Q3 EPS of $0.75, above the $0.72 consensus estimate, while revenue increased 19.2% year over year. Moelis Q3 Earnings Beat Estimates
• Positive Sentiment: Management said its pipeline was up about 20% year over year, a potential signal of stronger future advisory activity and revenue. Moelis pipeline and expense outlook
• Positive Sentiment: A valuation article estimates 31% upside to fair value, offering a bullish view on the shares; this is an external valuation assessment, not company guidance. Moelis stock fair-value assessment
• Positive Sentiment: The company declared a regular quarterly dividend of $0.65 per share, equivalent to $2.60 annually and a stated yield of about 4.5%. Moelis Q3 results and dividend announcement
• Negative Sentiment: Q3 revenue of $425.58 million missed analysts’ $434.17 million estimate, a shortfall that may offset the EPS beat. Moelis misses Q3 revenue estimates
• Negative Sentiment: Moelis expects full-year non-compensation expenses to rise 19%. Higher costs could constrain earnings or margins even as the pipeline grows. Moelis pipeline and expense outlook

Wall Street Analyst Weigh In

A number of analysts recently issued reports on MC shares. Keefe, Bruyette & Woods raised shares of Moelis & Company from a “hold” rating to a “moderate buy” rating in a report on Wednesday, October 7th. Morgan Stanley cut their price objective on shares of Moelis & Company from $85.00 to $77.00 and set an “overweight” rating for the company in a report on Thursday, October 8th. Wall Street Zen upgraded shares of Moelis & Company from a “sell” rating to a “hold” rating in a research report on Saturday, August 1st. Zacks Research raised shares of Moelis & Company from a “strong sell” rating to a “hold” rating in a research note on Tuesday, July 14th. Finally, UBS Group upgraded Moelis & Company from a “sell” rating to a “neutral” rating and dropped their target price for the company from $60.00 to $59.00 in a research report on Wednesday, October 7th. Two equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $68.83.

Insiders Place Their Bets

In related news, Director Kenneth Shropshire sold 1,881 shares of the company’s stock in a transaction dated Thursday, August 27th. The shares were sold at an average price of $69.06, for a total transaction of $129,901.86. Following the completion of the transaction, the director owned 7,633 shares in the company, valued at $527,134.98. This represents a 19.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 6.29% of the company’s stock.

About Moelis & Company

Moelis & Company (NYSE: MC) is an independent global investment bank that provides strategic and financial advisory services to corporations, financial sponsors, governments and other institutions. Its advisory platform focuses on mergers and acquisitions, recapitalizations, restructurings, capital raising and other complex corporate finance matters.

The firm advises clients across a range of industries, including technology, media and telecommunications; financial services; consumer and retail; energy and infrastructure; healthcare; and industrials.