NEW YORK - Evercore Inc. (NYSE:EVR) disclosed its financial results for the first quarter ended March 31, 2024, revealing a slight increase in revenue but falling short of Wall Street expectations. The independent investment banking advisory firm reported adjusted earnings per share (EPS) of $2.13, aligning with the analyst consensus. However, the company's revenue for the quarter was $580.8 million, missing the consensus estimate of $625.07 million.
In comparison to the first quarter of the previous year, Evercore's adjusted net revenues saw a modest 2% rise from $577.8 million to $587.3 million. Despite this increase, the firm's advisory fees dropped by 7%, which was somewhat offset by a substantial 143% surge in underwriting fees. The company's operating income on an adjusted basis also decreased year-over-year (YoY) from $115.5 million to $90.6 million.
John S. Weinberg, Chairman and CEO, commented on the quarter's performance, stating, "We begin 2024 on a strong note, having advised on some of the largest announced transactions year-to-date and we expect our activities to continue to build through the year." He added that the firm is experiencing momentum in its businesses and is well-positioned to serve clients as the market environment improves.
Evercore's results reflect the firm's involvement in significant transactions, including advising on the $37 billion spin-off of GE Vernova and the $35 billion acquisition of Ansys (NASDAQ:ANSS) by Synopsys (NASDAQ:SNPS). The company also highlighted its underwriting business's momentum, which experienced its strongest quarterly revenue since the fourth quarter of 2021.
Evercore's financial position remains strong, with cash and cash equivalents totaling $569.8 million and investment securities and certificates of deposit amounting to $865.3 million as of March 31, 2024. The firm's total headcount increased YoY, with approximately 2,225 employees as of the end of the first quarter of 2024, compared to 2,135 in the same period last year.
The company's capital return strategy included a 5% increase in its quarterly dividend to $0.80 per share and returning $308.5 million to shareholders through dividends and share repurchases. Evercore's board declared the next dividend to be paid on June 14, 2024, to stockholders on record as of May 31, 2024.
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