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Mar 31, 2021

Evercore Q1 2021 Earnings Report

Evercore reported record first quarter results driven by strong advisory and underwriting performance.

Key Takeaways

Evercore reported a record first quarter in 2021, with net revenues increasing by 55% to $662.3 million and adjusted net revenues increasing by 54% to $669.9 million. The company's advisory business maintained its #1 league table ranking for announced M&A volumes among independent firms, and the underwriting business experienced significant momentum.

Net Revenues increased 55% on a U.S. GAAP basis and 54% on an Adjusted basis.

Maintained #1 league table ranking among independents for announced M&A volumes.

Underwriting Revenue generated $79 million, reflecting ECM momentum.

Returned $275.3 million to shareholders through dividends and share repurchases.

Total Revenue
$670M
Previous year: $435M
+54.0%
EPS
$3.29
Previous year: $1.21
+171.9%
Assets Under Management
$10.6B
Previous year: $9.52B
+10.8%
Bookrunner Underwriting Trans
31
Fees >$1M Advisory Client Trans
103
Gross Profit
$242M
Previous year: $130M
+86.8%
Cash and Equivalents
$411M
Previous year: $588M
-30.1%
Total Assets
$2.73B
Previous year: $2.22B
+22.7%

Evercore

Evercore

Evercore Revenue by Segment

Forward Guidance

Evercore is optimistic about continued growth, driven by robust M&A volumes, capital raising activities, and strategic investments in talent and business capabilities.

Positive Outlook

  • Strong M&A and capital raising environment
  • Momentum in Underwriting business
  • Investments in convertibles and SPACs paying off
  • Expanded sector coverage creating growth opportunities
  • Active dialogues with talented individuals for team expansion

Challenges Ahead

  • Quarterly results may fluctuate significantly due to transaction timing
  • Travel and related expenses may increase as employees return to offices
  • Compensation ratio subject to fluctuation based on revenue earned
  • Potential risks described in Evercore's Annual Report on Form 10-K
  • Unpredictability of new risks and uncertainties

Revenue & Expenses

Visualization of income flow from segment revenue to net income