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Sep 30, 2023
Lazard Q3 2023 Earnings Report
Reported a challenging quarter due to M&A market conditions, while asset management showed solid performance. Conversion to C-Corporation was announced.
Key Takeaways
Lazard Ltd reported operating revenue of $532 million and net income of $7 million, or $0.06 per share, diluted, for the third quarter ended September 30, 2023. The company announced its conversion to a U.S. C-Corporation effective January 1, 2024.
Operating revenue was $532 million for the quarter ended September 30, 2023.
Net income, as adjusted, was $10 million, or $0.10 per share, diluted, for the quarter.
Asset Management AUM increased 15% since third quarter 2022.
Returned $285 million in capital to shareholders year to date.
Lazard
Lazard
Lazard Revenue by Segment
Revenue by Segment
Financial Advisory Revenue
CapyFin.comAsset Management Revenue
CapyFin.com Forward Guidance
Lazard anticipates a market recovery in M&A in the coming quarters and expects changes in the Asset Management business to contribute to future growth. The conversion to a C-Corporation is expected to attract a broader investor base and enhance liquidity.
Positive Outlook
- Market poised for a recovery in the quarters ahead.
- Continued solid performance in Asset Management.
- Changes made in Asset Management expected to contribute to future growth.
- Conversion to a C-Corporation positions Lazard to attract a broader base of investors.
- Conversion enhances liquidity.
Challenges Ahead
- Third-quarter results reflect challenging conditions for M&A.
- Market depreciation of $5.8 billion impacted AUM.
- Foreign exchange depreciation of $3.3 billion impacted AUM.
- Net outflows of $2.0 billion impacted AUM.
- Conversion to a C-Corporation is expected to result in a low single-digit increase to our effective tax rate.
Revenue & Expenses
Visualization of income flow from segment revenue to net income