Lazard Q2 Profit Plunges 91% to $5M on Advisory Slump, Tax Hit
LAZ is trading near its 52-week low of $38.67 (9.5% above the low).
Summary
Lazard's Q2 net income collapsed 91% to $5 million, or 3 cents per share, from $55 million a year ago, driven by a sharp drop in financial advisory revenue and an elevated tax rate. Adjusted EPS missed estimates, hurt by high tax rates. This follows a strong Q1 where net income hit $101 million, highlighting extreme quarter-to-quarter volatility in the advisory business. The advisory weakness is a direct hit to Lazard's core franchise, and the tax rate impact suggests a structural headwind that could persist. With the Campbell Lutyens acquisition still pending, the earnings miss raises questions about near-term capital allocation and integration costs. The stock is likely to face pressure as the market digests the magnitude of the advisory decline.
At the time of this announcement, LAZ was trading at $42.33 on NYSE in the Finance sector, with a market capitalization of approximately $4.3B. The 52-week trading range was $38.67 to $58.75. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.