NYSE$EVR
Evercore Inc. · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Evercore's results reflect the ability to support clients, with record underwriting revenues, despite a decrease in overall net revenues compared to the prior year period.
Evercore reported a decrease in net revenues by 5% on a U.S. GAAP basis for Q2 2020, primarily due to a decrease in Advisory Fees, which was partially offset by increases in Underwriting Fees and Commissions. Despite the challenging environment, the company delivered a 20% Adjusted operating margin.
- Second quarter Net Revenues decreased 5% on a U.S. GAAP basis and 4% on an Adjusted basis versus the prior year period.
- Record quarterly Underwriting Revenue of $93.6 million in the second quarter increased 453% versus the prior year period.
- Evercore ISI research and trading maintained high levels of engagement with clients as volatility remained elevated, driving an 11% increase in Commissions Revenue versus the prior year period.
- Maintained #1 league table ranking for announced M&A among independents over the last twelve months and achieved #1 league table ranking by number of announced and number of completed Restructuring deals in the U.S. for the first half of 2020
Headline financials
Revenue & EPS history
Evercore · Revenue · Quarterly
$512M
Revenue by segment
Evercore · $497M total across 4 segments · Q2 2020
- Advisory Fees$336M—67.7%
- Underwriting Fees$93.6M—18.8%
- Commissions and Related Revenue$54.1M—10.9%
- Asset Management and Administration Fees$13M—2.6%
Forward guidance
The worldwide COVID-19 pandemic has continued to have, and is expected to continue having, a significant negative effect on our business. The degree of the impact will likely be directly correlated to the length and depth of any economic slowdown and the speed of any recovery.
Tailwinds
- Ensuring the health, wellness and safety of our workforce, including redoubling our commitment to our diversity and inclusion objectives
- Focusing our Advisory and Research businesses to meet the immediate needs of our clients, while helping them be well-positioned for the eventual recovery
- Sustaining our operating infrastructure to support flexible and efficient working arrangements and planning and implementing our return to office on a thoughtful and disciplined basis
- Maintaining our strong and liquid balance sheet
- Equity underwriting activity levels have meaningfully increased.
Headwinds
- M&A activity remains limited
- Uncertainty and market volatility have led to delays or, in some cases, terminations of transactions
- Significant decline in global and domestic M&A transactions
- A prolonging of transaction closings as the conditions typically required for global and domestic M&A are generally not present
- Decline in revenue will have a significant impact on our results of operations and cash flows
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2020
+0.3%
Avg return
Earnings day
+0.0%
Avg return
5 days after
+1.3%
Avg return
30 days after
57%
37 / 65 earnings
Positive
+8.5%
Q3 2013
Best reaction
-14.2%
Q4 2010
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -5.0% | -6.3% | +0.2% | |
| Q4 2025 | +5.2% | +6.2% | -14.7% | |
| Q3 2025 | -9.4% | -6.7% | -0.5% | |
| Q1 2025 | +3.2% | +6.5% | +16.3% | |
| Q4 2024 | +0.8% | -3.8% | -26.9% | |
| Q3 2024 | -4.7% | -5.2% | +13.0% | |
| Q2 2024 | +0.6% | +0.4% | +0.4% | |
| Q1 2024 | -6.3% | -5.7% | +4.2% | |
| Q4 2023 | -0.7% | -0.8% | +5.7% | |
| Q3 2023 | -2.7% | -1.2% | +12.1% | |
| Q2 2023 | -4.8% | -4.0% | -4.6% | |
| Q1 2023 | -7.0% | -6.8% | -8.3% | |
| Q4 2022 | +2.2% | +3.2% | +2.0% | |
| Q3 2022 | +6.0% | +10.3% | +19.2% | |
| Q2 2022 | +4.6% | +5.1% | +2.2% | |
| Q1 2022 | +3.2% | +2.7% | +7.3% | |
| Q4 2021 | +1.2% | +2.4% | -6.2% | |
| Q3 2021 | -5.3% | -4.1% | -11.0% | |
| Q2 2021 | +0.3% | -2.0% | +4.6% | |
| Q1 2021 | +0.3% | -1.0% | +2.8% | |
| Q4 2020 | +0.8% | +2.4% | +7.5% | |
| Q3 2020 | +6.9% | +5.9% | +13.6% | |
| Q2 2020 | -2.9% | -4.7% | +4.2% | |
| Q1 2020 | -3.3% | -0.9% | +2.6% | |
| Q4 2019 | +8.0% | +3.9% | -9.3% | |
| Q3 2019 | -5.9% | -3.5% | -0.5% | |
| Q2 2019 | +1.6% | +0.0% | -12.3% | |
| Q1 2019 | +1.0% | +2.2% | -14.4% | |
| Q4 2018 | +7.0% | +7.2% | +11.9% | |
| Q3 2018 | -2.2% | -5.4% | -5.2% | |
| Q2 2018 | -0.6% | -2.1% | -4.2% | |
| Q1 2018 | +8.0% | +9.5% | +18.6% | |
| Q4 2017 | +5.5% | -2.5% | -4.8% | |
| Q3 2017 | +2.3% | +3.2% | +10.1% | |
| Q2 2017 | -1.5% | +0.4% | -4.5% | |
| Q1 2017 | -6.7% | -5.6% | -10.0% | |
| Q4 2016 | +0.3% | +4.8% | +4.8% | |
| Q3 2016 | -2.0% | -1.2% | +23.5% | |
| Q2 2016 | +0.2% | -1.0% | +1.6% | |
| Q1 2016 | -2.6% | — | — | |
| Q4 2015 | +7.5% | — | — | |
| Q3 2015 | +5.5% | — | — | |
| Q2 2015 | +1.4% | — | — | |
| Q1 2015 | +1.3% | — | — | |
| Q4 2014 | +1.7% | — | — | |
| Q3 2014 | +0.9% | — | — | |
| Q2 2014 | +3.4% | — | — | |
| Q1 2014 | +1.6% | — | — | |
| Q4 2013 | -2.4% | — | — | |
| Q3 2013 | +8.5% | — | — | |
| Q2 2013 | +3.5% | — | — | |
| Q1 2013 | +2.4% | — | — | |
| Q4 2012 | +7.6% | — | — | |
| Q3 2012 | -0.4% | — | — | |
| Q2 2012 | +5.3% | — | — | |
| Q1 2011 | -0.3% | — | — | |
| Q1 2012 | +0.6% | — | — | |
| Q1 2010 | -1.9% | — | — | |
| Q4 2011 | -1.9% | — | — | |
| Q4 2009 | -1.9% | — | — | |
| Q2 2011 | -1.4% | — | — | |
| Q3 2010 | -4.5% | — | — | |
| Q3 2011 | -4.5% | — | — | |
| Q4 2010 | -14.2% | — | — | |
| Q2 2010 | +5.4% | — | — |
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