Why Is Evercore (EVR) Up 8% Since Last Earnings Report?

A month has gone by since the last earnings report for Evercore (EVR). Shares have added about 8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Evercore due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Evercore Inc before we dive into how investors and analysts have reacted as of late.

Evercore Q2 Earnings & Revenues Beat Estimates

Evercore’s second-quarter adjusted earnings per share (EPS) of $2.42 surpassed the Zacks Consensus Estimate of $1.78. Also, the bottom line compared favorably with the prior-year quarter’s $1.81.

Results benefited from an increase in revenues generated from the Investment Management and Investment Banking & Equities segments. An improvement in assets under management balance was another positive. However, the rise in expenses was an undermining factor.

Net income attributable to common shareholders (GAAP basis) was $97.2 billion, which surged 31.7% from the year-ago quarter.

Revenues & Expenses Rise

In the second quarter of 2025, adjusted net revenues of $838.9 million beat the Zacks Consensus Estimate by 17.6%. Further, the top line increased 20.7% year over year.

Total expenses increased 17.6% year over year to $683.4 million. This was mainly due to a rise in all the components except professional fees and other operating expenses.

The adjusted compensation ratio was 65.4%, down from 66% in the prior-year quarter.

Adjusted operating margin was 18.7%, up from 16.4% in the prior-year quarter.

Quarterly Segment Performance (GAAP Basis)

Investment Banking & Equities: Net revenues increased 21.2% year over year to $812.2 million. This rise was primarily driven by an increase in all the components of net revenues. Also, operating income surged 40.8% year over year to $145.9 million.

Investment Management: Net revenues were $21.7 million, up 12.7% from the prior-year quarter. Operating income was $4.4 million, down 3.5% year over year. AUM was $14.5 million as of June 30, 2025, up 10% year over year.

Balance Sheet Position Strong

As of June 30, 2025, cash and cash equivalents were $617.3 million, and investment securities and certificates of deposit were $1.1 billion. Moreover, current assets exceeded current liabilities by $$1.6 billion as of the same date.

Capital Distributions Activities

In the reported quarter, Evercore repurchased 0.2 million shares at an average price of $237.79.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

The consensus estimate has shifted 11.73% due to these changes.

VGM Scores

At this time, Evercore has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Evercore has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Evercore is part of the Zacks Financial - Investment Bank industry. Over the past month, The PNC Financial Services Group, Inc (PNC), a stock from the same industry, has gained 8.1%. The company reported its results for the quarter ended June 2025 more than a month ago.

The PNC Financial Services Group reported revenues of $5.69 billion in the last reported quarter, representing a year-over-year change of +5.1%. EPS of $3.85 for the same period compares with $3.30 a year ago.

For the current quarter, The PNC Financial Services Group is expected to post earnings of $4.00 per share, indicating a change of +14.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.

The PNC Financial Services Group has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

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This article originally published on Zacks Investment Research (zacks.com).

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