Lazard (NYSE:LAZ) Posts Quarterly Earnings Results, Misses Expectations By $0.10 EPS

Lazard (NYSE:LAZ) posted its quarterly earnings results on Friday. The asset manager reported $0.42 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.52 by ($0.10), Briefing.com reports. The firm had revenue of $673.00 million for the quarter, compared to analyst estimates of $707.42 million. Lazard had a net margin of 7.49% and a return on equity of 33.04%. The business’s revenue was up 16.8% on a year-over-year basis. During the same period in the prior year, the company posted $0.56 earnings per share.

Here are the key takeaways from Lazard’s conference call:

• Lazard is acquiring Campbell Lutyens to form Lazard CL, creating a leading global private capital advisory franchise expected to drive roughly $500M of combined 2027 revenue and to be EPS‑accretive in 2027; the deal is primarily stock consideration with deferred/earn‑out optionality and aims to close this year.
• Asset Management momentum accelerated — adjusted net revenue rose 17% to $309M, the business recorded net inflows of $9B (the largest quarterly inflows in ~20 years), AUM of ~$259B, and management fees up 25% YoY with an average fee rate around 44.6 bps.
• Financial Advisory was lumpy in Q1 (adjusted net revenue $356M, down 4%) as several large transactions slipped later in the year, but materially higher conflict clearances (>$5B deals up ~50% YoY) and active client engagement point to a constructive pipeline that is sensitive to geopolitical developments.
• Expense pressure in Q1 pushed the adjusted compensation ratio to 69.9% (adjusted comp $471M); management expects full‑year comp closer to ~65.5% and is targeting operational efficiencies, but near‑term margin leverage remains a concern.

Lazard Stock Performance

LAZ stock traded down $3.23 during trading on Friday, reaching $45.27. 2,938,127 shares of the company’s stock were exchanged, compared to its average volume of 1,339,721. The company has a quick ratio of 2.28, a current ratio of 2.28 and a debt-to-equity ratio of 1.85. Lazard has a 1-year low of $38.67 and a 1-year high of $58.75. The company’s fifty day moving average price is $45.25 and its 200-day moving average price is $48.97. The firm has a market cap of $5.06 billion, a PE ratio of 20.77, a P/E/G ratio of 0.42 and a beta of 1.42.

Lazard Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 22nd. Shareholders of record on Monday, May 11th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date is Monday, May 11th. Lazard’s payout ratio is 91.74%.

Insiders Place Their Bets

In other Lazard news, CEO Christopher Hogbin sold 7,885 shares of the business’s stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $40.37, for a total transaction of $318,317.45. Following the completion of the transaction, the chief executive officer owned 15,773 shares in the company, valued at approximately $636,756.01. The trade was a 33.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Peter Richard Orszag sold 69,170 shares of the company’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $40.76, for a total value of $2,819,369.20. Following the completion of the sale, the chief executive officer owned 210,942 shares of the company’s stock, valued at approximately $8,597,995.92. This trade represents a 24.69% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 80,999 shares of company stock valued at $3,292,962 in the last quarter. 0.95% of the stock is currently owned by insiders.

Institutional Trading of Lazard

Institutional investors have recently modified their holdings of the company. Kestra Advisory Services LLC acquired a new stake in shares of Lazard in the fourth quarter valued at $26,000. IFP Advisors Inc lifted its holdings in shares of Lazard by 53.5% in the third quarter. IFP Advisors Inc now owns 643 shares of the asset manager’s stock valued at $34,000 after buying an additional 224 shares during the period. State of Wyoming acquired a new stake in shares of Lazard in the second quarter valued at $38,000. Triumph Capital Management acquired a new stake in shares of Lazard in the third quarter valued at $42,000. Finally, US Bancorp DE lifted its holdings in shares of Lazard by 122.1% in the third quarter. US Bancorp DE now owns 1,588 shares of the asset manager’s stock valued at $84,000 after buying an additional 873 shares during the period. Institutional investors and hedge funds own 54.80% of the company’s stock.

Key Stories Impacting Lazard

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Strategic acquisition — Lazard agreed to buy Campbell Lutyens to create “Lazard CL,” expanding its private-capital advisory capabilities and positioning the firm as a leader in fund placement and secondary advisory, which could boost long-term fee pool and cross‑sell opportunities. Article Title
• Positive Sentiment: Asset-management strength — Adjusted net revenue for Asset Management rose 17% YoY with positive net flows of $9 billion; Lazard said the asset-management business drove much of the profit increase this quarter. This supports recurring-fee growth and margin resilience. Article Title
• Positive Sentiment: Dividend — Board declared a $0.50 quarterly dividend (4.4% yield on current levels), payable May 22; a healthy yield can support shareholder returns and investor sentiment. Article Title
• Neutral Sentiment: GAAP vs. adjusted metrics — Lazard reported first-quarter net revenue of $757M and GAAP net income of $101M ($0.91 per share), while adjusted net revenue and the EPS metric investors tracked differ; reconcilement between GAAP and adjusted figures may explain mixed market reaction. Article Title
• Negative Sentiment: Earnings and revenue missed estimates — Reported EPS of $0.42 missed consensus ~$0.52 and revenue of $673M missed estimates near $707M; missing both top- and bottom-line expectations is the primary catalyst for the stock decline as it shows near-term operating pressure vs. Street models. Article Title
• Negative Sentiment: Market focus and volume — Shares moved lower on the earnings miss with above-average volume, suggesting investors are prioritizing near-term earnings shortfalls and uncertainty over integration/timing of growth from the acquisition. Article Title

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on LAZ. Zacks Research lowered Lazard from a “hold” rating to a “strong sell” rating in a research report on Friday, April 10th. Morgan Stanley lowered their price objective on Lazard from $59.00 to $52.00 and set an “underweight” rating for the company in a research note on Thursday, April 9th. Bank of America started coverage on Lazard in a research note on Monday, January 26th. They set a “buy” rating and a $65.00 price objective for the company. Wall Street Zen downgraded Lazard from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. Finally, UBS Group lowered their price objective on Lazard from $48.00 to $45.00 and set a “neutral” rating for the company in a research note on Wednesday, April 8th. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Lazard has a consensus rating of “Hold” and an average price target of $52.50.

About Lazard

Lazard Ltd. (NYSE: LAZ) is a leading global financial advisory and asset management firm, offering a comprehensive suite of services to corporations, governments and individuals. Founded in 1848, Lazard has built a reputation for providing independent advice and innovative solutions in complex financial transactions. The firm is publicly traded on the New York Stock Exchange under the ticker symbol LAZ and maintains its headquarters in Hamilton, Bermuda.

In its Financial Advisory segment, Lazard assists clients with mergers and acquisitions, restructurings, capital structure optimization and strategic planning.