NYSE$MC

Moelis & Company · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Moelis & Company's financial performance decreased in Q4 2019 compared to Q4 2018.

Moelis & Company reported a decrease in revenue and net income for the fourth quarter of 2019. Revenues decreased by 6% compared to the prior year period, while GAAP net income decreased by 52%. The company declared a special dividend of $0.75 per share and increased the regular quarterly dividend to $0.51 per share.

  • Q4 revenues decreased by 6% compared to the record fourth quarter of 2018.
  • GAAP net income was $0.38 per share (diluted) for the fourth quarter.
  • The company added 11 Managing Directors in 2019 through internal promotion and key hires.
  • A special dividend of $0.75 per share was declared, and the regular quarterly dividend was increased to $0.51 per share.

Headline financials

Total Revenue

$224M

Previous: $238M-6.2%
EPS (adj)

$0.38

Previous: $0.77-50.6%
Compensation and Benefits Ratio

74.7%

Previous: 57.5%+29.9%
Non-Compensation Expense Ratio

15.5%

Previous: 15.6%-0.6%
Net Income

$27.2M

No prior period
Operating Income

$16.8M

No prior period
Cash & Equivalents

$342M

No prior period

Revenue & EPS history

Moelis · Revenue · Quarterly

$224M

Q4 2019-6.2%vs Q4 2018
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

Moelis & Company is focused on investing in talent and executing on increased levels of activity.

Tailwinds

  • Strong pipeline of 2020 Managing Director hires
  • Increase dividend for the seventh time
  • Robust pipeline of Managing Director hires for 2020.
  • Addressed capabilities in data science, fintech, specialty finance, oil & gas, and technology, media and telecommunications
  • Enhanced coverage of the Benelux and Nordic regions and the Middle East

Headwinds

  • Revenues and net income can fluctuate materially depending on the number, size and timing of completed transactions
  • Revenues decreased 6% over the prior year period
  • Decrease in quarterly revenues was driven by a decrease in transaction completions
  • GAAP net income decreased by 52%
  • Net income attributable to Moelis & Company decreased 45%

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 Q4 2019

Historical avgQ4 2019

-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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