NYSE$PJT

PJT Partners Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

PJT Partners reported strong first quarter results driven by revenue growth and effective expense management.

PJT Partners Inc. reported a strong first quarter in 2020, with total revenues increasing by 56% to $200.2 million compared to the prior year quarter. GAAP Diluted EPS increased to $0.72, and Adjusted EPS was $0.71. The company's strong balance sheet includes $113 million in cash, cash equivalents and short-term investments.

  • Total Revenues increased by 56% year-over-year to $200 million.
  • Advisory Revenues grew by 50% year-over-year to $157 million.
  • Placement Revenues increased by 67% year-over-year to $39 million.
  • GAAP Diluted EPS was $0.72 and Adjusted EPS was $0.71.

Headline financials

Total Revenue

$200M

Previous: $128M+56.3%
EPS (adj)

$0.71

Previous: $0.28+153.6%
Compensation & Benefits % of Rev

67.0%

No prior period
Non-Compensation % of Rev

16.3%

No prior period
Capital Expenditures

-$5.36M

Previous: -$1.56M-243.6%
Free Cash Flow

$13.5M

Previous: -$460K+3033.9%
Net Income

$18.9M

Previous: $1.1M+1613.0%
Operating Income

$129M

Previous: $60.1M+115.1%
Gross Profit

$200M

Previous: $128M+56.3%
Cash & Equivalents

$113M

No prior period

Revenue & EPS history

PJT · Revenue · Quarterly

$200M

Q1 2020+56.3%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

PJT · $200M total across 3 segments · Q1 2020

  • Advisory Fees
    $157M+49.9%
  • Placement Fees
    $39M+67.3%
  • Interest Income & Other
    $4.59M

Forward guidance

PJT Partners is closely monitoring the impact of COVID-19 on its business, financial performance, and operating results, acknowledging that these factors are significantly influenced by unpredictable and uncontrollable factors.

Tailwinds

  • Vast majority of employees are working remotely since mid-March and prepared to continue.
  • No material changes to internal controls due to the new working environment.
  • Company's financial condition is strong with substantial cash balances.
  • Currently have no debt.
  • Maintain access to a $40 million line of credit facility.

Headwinds

  • COVID-19's impact on business, financial performance and operating results will be significantly driven by factors that we are unable to predict or control.
  • Severity and duration of the pandemic are uncertain.
  • Impact on the U.S. and global economies is unpredictable.
  • External factors could have a material effect on financial performance and operating results going forward.
  • Potential for business disruptions and reductions in employment.

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 2020

Historical avgQ1 2020

+1.5%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.8%

Avg return

30 days after

62%

26 / 42 earnings

Positive

+14.0%

Q4 2016

Best reaction

-11.6%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%-0.6%-0.2%
Q4 2025-7.5%-6.6%-16.1%
Q3 2025+0.6%+2.6%+5.1%
Q1 2025+4.5%+6.0%+11.5%
Q4 2024+5.1%+5.0%-10.4%
Q3 2024-2.3%-1.0%+17.1%
Q2 2024+5.7%-2.5%-2.2%
Q1 2024+6.4%+6.3%+14.0%
Q4 2023-4.9%-1.2%+1.1%
Q3 2023+10.0%+13.4%+22.9%
Q2 2023+5.7%-0.1%-3.1%
Q1 2023-11.6%-10.9%-4.2%
Q4 2022-5.0%-3.1%-5.1%
Q3 2022-5.3%-3.0%+3.8%
Q2 2022+3.0%+4.9%+7.0%
Q1 2022+4.0%+1.0%+13.9%
Q4 2021-8.4%-9.1%-13.9%
Q3 2021-10.3%-8.1%-9.3%
Q2 2021+3.0%+0.3%+6.4%
Q1 2021+5.1%-0.3%-0.5%
Q4 2020-1.5%-3.6%-10.3%
Q3 2020+1.2%-1.0%+4.6%
Q2 2020+2.8%+0.6%+11.1%
Q1 2020+11.2%-0.9%+15.5%
Q4 2019+5.2%+8.2%-10.9%
Q3 2019+6.8%+4.9%+8.7%
Q2 2019+12.2%+7.3%+10.3%
Q1 2019+1.3%+4.2%-14.4%
Q4 2018-0.4%-0.3%-7.6%
Q3 2018+6.2%+7.0%+11.2%
Q2 2018+7.0%+3.8%+5.9%
Q1 2018-2.3%-5.2%-0.4%
Q4 2017+3.7%+6.3%+10.4%
Q3 2017-3.2%-2.2%+8.9%
Q2 2017-7.4%-6.9%-10.8%
Q1 2017+5.4%+4.4%+14.6%
Q4 2016+14.0%+18.4%+21.3%
Q3 2016-3.4%-2.0%+6.8%
Q2 2016-4.2%-7.8%-5.3%
Q1 2016+9.1%
Q4 2015+1.6%
Q3 2015+0.2%
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014

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