NYSE$MC

Moelis & Company · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Moelis & Company's financial performance in Q2 2020 reflected a 4% increase in revenues compared to the prior year period, driven by higher average fees per M&A transaction and increased Capital Markets activity.

Moelis & Company reported a 4% increase in revenues for the second quarter of 2020, reaching $159.9 million. However, the firm experienced a GAAP net loss of ($0.10) per share and an adjusted net loss of ($0.11) per share, compared to a net income of $0.54 and $0.56 respectively in the prior year period. The firm's strong balance sheet and strategic investments position it for future growth.

  • Second quarter revenues increased by 4% year-over-year to $159.9 million.
  • GAAP net loss was ($0.10) per share, while adjusted net loss was ($0.11) per share.
  • The revenue increase was driven by higher average fees per M&A transaction and increased Capital Markets activity.
  • The company maintained a strong balance sheet with $193.7 million in cash and short-term investments and no debt.

Headline financials

Total Revenue

$160M

Previous: $154M+4.2%
EPS (adj)

-$0.11

Previous: $0.56-119.6%
Capital Expenditures

-$21.7M

Previous: -$4.59M-372.2%
Free Cash Flow

-$30.7M

Previous: $33.1M-192.8%
Net Income

-$9.04M

Previous: $37.7M-124.0%
Operating Income

-$17.2M

Previous: $33.9M-150.6%
Gross Profit

$160M

Previous: $154M+4.2%
Cash & Equivalents

$194M

No prior period

Revenue & EPS history

Moelis · Revenue · Quarterly

$160M

Q2 2020+4.2%vs Q2 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Moelis & Company is positioning itself for future growth by investing in the firm during a softer operating environment, aiming to capitalize when more normal deal activity resumes.

Tailwinds

  • Strong balance sheet with no debt.
  • Liquid financial position.
  • Collaborative culture allowing attraction and retention of exceptional talent.
  • Focus on finding the right talent who will excel on our platform.
  • Committed to returning all of our excess capital when normal business activity resumes.

Headwinds

  • Business, revenues, and operating results could continue to be adversely affected by COVID-19.
  • Uncertain nature of the deal-making environment due to COVID-19.
  • Revenues and net income can fluctuate materially depending on the number, size and timing of completed transactions.
  • Financial results in any particular quarter may not be representative of future results over a longer period of time.
  • Scale, scope and duration of the impact of the COVID-19 pandemic on our business, revenues and operating results is unpredictable and depends on many factors outside of our control.

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

Historical avgQ2 2020

-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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