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Sep 30, 2020

Evercore Q3 2020 Earnings Report

Evercore's Q3 2020 earnings were reported, marked by flat net revenues and a significant surge in underwriting revenue.

Key Takeaways

Evercore reported flat net revenues on both U.S. GAAP and adjusted basis compared to Q3 2019. Underwriting revenue increased by 278% compared to the prior year period. The firm maintained its #1 league table ranking for announced M&A transaction volume among independents.

Net Revenues were flat compared to the prior year period.

Underwriting Revenue increased 278% versus the prior year period.

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

Quarterly dividend increased 5% to $0.61 per share.

Total Revenue
$408M
Previous year: $409M
+-0.0%
EPS
$1.11
Previous year: $1.26
-11.9%
Assets Under Management
$10.9B
Bookrunner Underwriting Trans
23
Previous year: 10
+130.0%
Underwriting Transactions
30
Previous year: 18
+66.7%
Gross Profit
$115M
Previous year: $135M
-14.7%
Cash and Equivalents
$1.1B
Previous year: $305M
+261.0%
Total Assets
$2.65B
Previous year: $2.21B
+19.6%

Evercore

Evercore

Evercore Revenue by Segment

Forward Guidance

Evercore's diverse capabilities have enabled them to offset weakened M&A activity and offer relevant services to their clients.

Positive Outlook

  • Evercore's broad and diverse capabilities, including underwriting, restructuring, capital markets advisory and equity commissions and related fees, have enabled them to predominantly offset weakened M&A activity
  • Teams continue to work diligently
  • Continue to monitor cash levels
  • Continue to monitor liquidity
  • Continue to monitor regulatory capital requirements

Challenges Ahead

  • The worldwide COVID-19 pandemic has posed, and is expected to continue to pose, significant challenges for our business.
  • Revenues and cash flows have been adversely impacted to date
  • There remains uncertainty as to how the pandemic and government response may impact the markets
  • There remains uncertainty as to how the pandemic and government response may impact our clients' needs in the future.
  • Continue to monitor debt covenants

Revenue & Expenses

Visualization of income flow from segment revenue to net income