Moelis & Co Reports Q1 EPS Miss, Announces $117M Share Repurchases and $0.65 Dividend
Summary
Moelis & Company reported Q1 adjusted EPS of $0.50, missing estimates, but achieved record revenues and repurchased $117.3 million in shares while maintaining its dividend.
Key Events
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Q1 Adjusted EPS Miss
Adjusted diluted earnings per share of $0.50 missed the IBES estimate of $0.55.
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Record Q1 Revenues
Achieved record first-quarter revenues of $319.8 million, representing a 4% increase from the prior year period.
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Significant Share Repurchases
Repurchased 1.9 million shares for $117.3 million during the quarter, including a record 0.9 million open market repurchases at an average price of $59.78 per share.
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Dividend Declared
Declared a regular quarterly dividend of $0.65 per share, maintaining its capital return to shareholders.
Analysis
Moelis & Company reported mixed first-quarter results, with adjusted diluted earnings per share of $0.50 missing analyst estimates of $0.55. Despite this, the company achieved record first-quarter revenues of $319.8 million, a 4% increase year-over-year, and an improved adjusted pre-tax margin of 15.0%. A significant positive is the execution of its capital return strategy, repurchasing 1.9 million shares for $117.3 million, including a record 0.9 million open market purchases, and maintaining its regular quarterly dividend of $0.65 per share. The firm also continues to invest in growth by adding new Managing Directors. Investors will likely weigh the earnings miss against the strong capital return and positive revenue trends.
At the time of this filing, MC was trading at $65.73 on NYSE in the Finance sector, with a market capitalization of approximately $5.4B. The 52-week trading range was $51.06 to $78.22. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.