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 higher investment income.

• 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 achieved #1 advisory revenues among independent firms since 2018, with a diversified business model and global presence, and expanded sector/geographic coverage, notably in Europe and Paris.

• Strategic investments in talent and new product groups continued, with several senior hires and commitments in investment banking and equities.

• The firm remains optimistic about continued growth into 2025, despite uncertainties from the U.S. election and geopolitical tensions.

Financial highlights

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

• Adjusted operating income rose 63% to $135 million in Q3 2024; LTM adjusted operating income was $463 million.

• Adjusted EPS for Q3 2024 was $2.04, up 57% year-over-year; LTM adjusted diluted EPS was $8.00.

• Advisory fees grew 27% to $593 million; underwriting fees rose 43% to $44 million; commissions and related revenue increased 12% to $55 million in Q3 2024.

• Asset management and administration fees increased 19% to $21 million in Q3 2024, driven by record AUM of $13.9 billion.

Outlook and guidance

• Management expects gradual improvement in margins and continued revenue growth over the near to medium term, with robust activity in advisory, restructuring, and private capital advisory into 2025.

• IPO and equity capital markets activity expected to pick up in 2025, though short-term windows may narrow due to the U.S. election.

• European M&A recovery is lagging the U.S., but momentum is building with ongoing investments in talent.

• Leadership anticipates continued recovery and growth as market conditions improve.