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Jun 30, 2022

Evercore Q2 2022 Earnings Report

Evercore reported a solid second quarter and first half of 2022, with record advisory revenues for the first half of the year and continued investments in talent and capital return strategy.

Key Takeaways

Evercore reported second quarter net revenues of $630.9 million on a U.S. GAAP basis. Advisory revenues for the first half of 2022 reached a record $1.2 billion. The firm remains committed to its capital return strategy, returning $502.0 million to shareholders in the first six months of the year.

Second Quarter Net Revenues were $630.9 million.

First Half Net Revenues were flat versus 2021.

Advisory Revenues of $1.2 billion for the first half of 2022, increasing 12% versus the same period in 2021.

Returned $502.0 million to shareholders during the first six months of 2022.

Total Revenue
$637M
Previous year: $691M
-7.8%
EPS
$2.46
Previous year: $3.17
-22.4%
Assets Under Management
$10.5B
Previous year: $11.1B
-6.0%
Bookrunner Underwriting Trans
5
Previous year: 25
-80.0%
Fees >$1M Advisory Client Trans
100
Previous year: 115
-13.0%
Gross Profit
$213M
Previous year: $256M
-16.9%
Cash and Equivalents
$444M
Previous year: $442M
+0.5%
Total Assets
$3.01B
Previous year: $2.95B
+2.2%

Evercore

Evercore

Evercore Revenue by Segment

Forward Guidance

Despite the uncertain environment, Evercore accomplished a solid second quarter and first half of 2022 and remains confident in its growth strategy.

Positive Outlook

  • Backlogs remain strong.
  • Investments in the business will allow the company to continue to achieve success.
  • Seven Advisory Senior Managing Directors joined this year.
  • Committed to capital return strategy.
  • Maintain a durable balance sheet.

Challenges Ahead

  • Increased risk associated with the current geopolitical, economic, and market headwinds.
  • Quarterly results may fluctuate significantly due to the timing and amount of transaction fees earned.
  • Lower performance of investment funds portfolio during the current year period.
  • Decrease in fees from Wealth Management clients as associated AUM decreased 6%, primarily from market depreciation.
  • Shift from gains to losses on investment funds portfolio due to the overall market decline.

Revenue & Expenses

Visualization of income flow from segment revenue to net income