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

Moelis & Company (NYSE:MC) released its earnings results on Thursday. The asset manager reported $0.75 earnings per share for the quarter, beating 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 firm had revenue of $425.58 million during the quarter, compared to the consensus estimate of $434.17 million. During the same period in the prior year, the firm earned $0.68 EPS. The company’s revenue was up 19.2% compared to the same quarter last year.

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 Trading Down 2.9%

Shares of NYSE MC traded down $1.69 during midday trading on Friday, hitting $56.69. The company’s stock had a trading volume of 1,479,972 shares, compared to its average volume of 1,098,888. The stock has a fifty day moving average price of $59.35 and a 200 day moving average price of $63.68. Moelis & Company has a one year low of $51.06 and a one year high of $78.22. The firm has a market capitalization of $4.44 billion, a price-to-earnings ratio of 19.28, a P/E/G ratio of 2.57 and a beta of 1.87.

Moelis & Company Announces Dividend

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

Wall Street Analyst Weigh In

Several research firms recently commented on MC. Morgan Stanley dropped their price objective on Moelis & Company from $85.00 to $77.00 and set an “overweight” rating on the stock in a research note on Thursday, October 8th. Wall Street Zen raised Moelis & Company from a “sell” rating to a “hold” rating in a research report on Saturday, August 1st. UBS Group upgraded Moelis & Company from a “sell” rating to a “neutral” rating and lowered their target price for the company from $60.00 to $59.00 in a research note on Wednesday, October 7th. Weiss Ratings lowered Moelis & Company from a “hold (c+)” rating to a “hold (c)” rating in a research note on Friday, October 16th. Finally, JPMorgan Chase & Co. dropped their price target on Moelis & Company from $70.00 to $68.00 and set a “neutral” rating on the stock in a research report on Tuesday, October 27th. Two analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $68.83.

Insider Activity at Moelis & Company

In related news, Director Kenneth Shropshire sold 1,881 shares of the firm’s stock in a transaction that occurred on Thursday, August 27th. The shares were sold at an average price of $69.06, for a total value of $129,901.86. Following the completion of the transaction, the director directly owned 7,633 shares of the company’s stock, valued at approximately $527,134.98. This trade represents a 19.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 6.29% of the company’s stock.

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

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.