NYSE$MC

Moelis & Company · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Moelis & Company's financial performance for Q1 2022 was reported, featuring record revenues and strategic investments in talent.

Moelis & Company reported a record first quarter with GAAP revenues of $302.1 million, up 14% from the prior year, and adjusted revenues of $298.2 million, a 13% increase. The firm's GAAP net income was $0.94 per share (diluted), while adjusted net income was $0.95 per share (diluted). The company repurchased a record 2.0 million shares during the quarter and declared a regular quarterly dividend of $0.60 per share.

  • GAAP revenues reached $302.1 million, while adjusted revenues were $298.2 million, representing a 13% increase year-over-year.
  • GAAP net income was $0.94 per share (diluted), and adjusted net income was $0.95 per share (diluted), including a $0.12 per share tax benefit.
  • The adjusted pre-tax margin for the first quarter of 2022 was 29.2%.
  • The company repurchased a record 2.0 million shares of its common stock during the first quarter and declared a quarterly dividend of $0.60 per share.

Headline financials

Total Revenue

$302M

Previous: $264M+14.5%
EPS (adj)

$0.95

Previous: $1.02-6.9%
Adjusted Pre-Tax Margin

29.2%

Previous: 29.0%+0.7%
Capital Expenditures

-$2.46M

Previous: -$3.54M+30.5%
Free Cash Flow

$71.1M

Previous: $72.3M-1.6%
Net Income

$73.6M

Previous: $75.8M-2.9%
Operating Income

$89.4M

Previous: $72.4M+23.4%
Gross Profit

$302M

Previous: $264M+14.5%
Cash & Equivalents

$302M

Previous: $228M+32.4%

Revenue & EPS history

Moelis · Revenue · Quarterly

$302M

Q1 2022+14.5%vs Q1 2021
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Forward guidance

Moelis & Company remains confident in its ability to execute for clients and shareholders amidst market volatility. The firm continues to focus on strategic decision making and organic growth, with a robust pipeline of potential Managing Director hires for 2022.

Tailwinds

  • Strong pipeline of internal and external senior level talent.
  • Record first quarter revenues driven by integrated network of bankers.
  • Focus on providing innovative solutions for clients in times of volatility.
  • Commitment to returning 100% of excess capital to shareholders.
  • Maintains a strong financial position with substantial cash and no debt.

Headwinds

  • Revenues and net income can fluctuate materially depending on transaction timing and other factors.
  • Financial results in any particular quarter may not be representative of future results.
  • Other income (expenses) on a GAAP basis was expense of $2.2 million, compared to income of $3.2 million in the prior year period.
  • Recorded unrealized losses of $3.9 million from the mark-to-market impact on certain shares held.
  • Increased compensation and benefits expenses due to higher revenues earned.

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 Q1 2022

Historical avgQ1 2022

-0.1%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-2.0%

Avg return

30 days after

57%

27 / 47 earnings

Positive

+11.2%

Q3 2019

Best reaction

-17.0%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.6%-5.3%+0.3%
Q4 2025+1.1%+2.8%-20.8%
Q3 2025-3.9%-7.0%-4.0%
Q2 2025-0.7%+0.2%+2.1%
Q1 2025+0.8%+2.2%+8.4%
Q4 2024+1.9%-2.6%-22.4%
Q3 2024-4.9%-4.8%+6.6%
Q1 2024-7.9%-8.3%+6.0%
Q3 2023+1.8%-1.0%+15.5%
Q2 2023-7.5%-5.7%-12.8%
Q1 2023-10.9%-10.4%-8.3%
Q4 2022-8.3%-1.5%-18.1%
Q3 2022-8.4%-7.0%+1.4%
Q2 2022+5.5%+7.8%+2.0%
Q1 2022+4.2%-0.1%+3.7%
Q4 2021-6.1%-9.0%-19.9%
Q3 2021-1.5%+7.6%-11.3%
Q2 2021+5.9%+7.4%+10.3%
Q1 2021-1.6%-4.4%-5.9%
Q4 2020+1.9%+3.2%+6.9%
Q3 2020+0.6%-4.7%+2.3%
Q2 2020-1.5%+0.5%+6.0%
Q1 2020-3.5%-6.0%-0.9%
Q4 2019+8.4%+6.2%-21.0%
Q3 2019+11.2%+10.2%+2.7%
Q2 2019+1.6%-4.0%-6.0%
Q1 2019-9.5%-10.7%-23.1%
Q4 2018+5.9%+4.3%-2.0%
Q3 2018-17.0%-20.4%-21.2%
Q2 2018+3.7%+2.3%-3.8%
Q1 2018+2.1%-0.8%+10.3%
Q4 2017+4.9%+5.3%+7.5%
Q3 2017-4.8%-2.2%+7.2%
Q2 2017+8.7%-1.4%-4.0%
Q1 2017+0.0%-5.7%-5.5%
Q4 2016+7.3%+8.1%+7.9%
Q3 2016+4.8%+1.2%+18.5%
Q2 2016+8.3%+10.7%+9.0%
Q1 2016-0.4%
Q4 2015+0.6%
Q3 2015+5.8%
Q2 2015+5.2%
Q1 2015-9.3%
Q4 2014-4.2%
Q3 2014+0.2%
Q2 2014+1.8%
Q1 2014+0.5%
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012

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