Evercore Partners Earnings: Falls Short of Analyst Expectations

Falling revenue did not prevent Evercore Partners Inc. (NYSE:EVR) from reporting a profit boost in the third quarter. Evercore Partners is an independent investment banking advisory firm that provides advisory services to prominent multinational corporations on significant mergers, acquisitions, divestitures, restructurings, financings, and other strategic corporate transactions.

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Evercore Partners Inc. Earnings Cheat Sheet

Results: Net income for Evercore Partners Inc. rose to $5.3 million (17 cents per share) vs. $2 million (6 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Fell 6.2% to $153 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Evercore Partners Inc. fell short of the mean analyst estimate of 34 cents per share. It fell short of the average revenue estimate of $163.2 million.

Quoting Management: “We are pleased with our third quarter results, reporting our third best quarter for revenue on sustained strong performance in our Advisory business. Our Wealth Management and Institutional Equities businesses continue to take market share and investment performance is improving in the Institutional Asset Management business. While market conditions remain challenging, we are working hard to sustain this momentum through the end of the year and into 2013, continuing to build market share in each of our core businesses,” said Ralph Schlosstein, President and Chief Executive Officer. “Our results further demonstrate our commitment to delivering strong returns to our shareholders. During the quarter we repurchased more than one million shares of stock (2.6 million shares year to date) and increased our dividend by 10% to $0.22 per share. The increased dividend and our Board’s authorization of a new stock repurchase program for five million shares, more than double the size of the prior program, demonstrate our ongoing commitment to delivering returns to our shareholders as we continue to grow.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 49 cents versus a mean estimate of net income of 48 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 44 cents per share to 41 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $1.41 a share to $1.34 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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