Investment banking firm Evercore (NYSE: EVR) will be reporting earnings this Wednesday before market open. Here’s what to look for.
Evercore beat analysts’ revenue expectations last quarter, reporting revenues of $1.30 billion, up 32.4% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS and revenue estimates.
Is Evercore a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Evercore’s revenue to grow 71.8% year on year, improving from the 19.2% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have mixed opinions about the business, with revenue estimates seeing both upward and downward revisions over the last 30 days. Evercore rarely misses Wall Street’s revenue estimates.
Looking at Evercore’s peers in the investment banking & brokerage segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Morgan Stanley delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 4%, and Goldman Sachs reported revenues up 14.4%, topping estimates by 1%. Morgan Stanley traded up 2.2% following the results while Goldman Sachs’s stock price was unchanged.
Read our full analysis of Morgan Stanley’s results here and Goldman Sachs’s results here.
There has been positive sentiment among investors in the investment banking & brokerage segment, with share prices up 13% on average over the last month. Evercore is up 21.9% during the same time and is heading into earnings with an average analyst price target of $367.10 (compared to the current share price of $347.77).
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