Moelis & Company's Q1 Earnings Beat on Higher Revenues, Stock Up 4.9%

Moelis & Company MC shares gained 4.9% in after-hours trading following the release of its better-than-expected first-quarter 2025 results. Adjusted earnings for the quarter of 64 cents per share surpassed the Zacks Consensus Estimate of 57 cents. The bottom line improved significantly from 22 cents per share in the prior-year quarter.

Results benefited from a rise in revenues and other income. Also, the company had a solid liquidity position in the quarter. However, an increase in expenses was a headwind.

Net income (GAAP basis) was $50.3 million compared with $16.6 million in the prior-year quarter.

MC’s Revenues Rise, Expenses Jump

Total revenues (GAAP basis) for the quarter grew 41% year over year to $306.6 million. This was driven by a rise in M&A and capital markets revenues. Moreover, the top line surpassed the Zacks Consensus Estimate of $289.8 million.

Total operating expenses (GAAP basis) were $269.9 million, which jumped 27.4%. The rise was due to an increase in both compensation and benefits costs and non-compensation expenses. Our estimates for total operating expenses were $252.9 million.

Other income (GAAP basis) was $6.1 million in the reported quarter, up 45.2%. We had projected the metric to be $5.5 million.

As of March 31, 2025, the company had cash and liquid investments of $336.3 million, with no debt or goodwill.

Our View on Moelis & Company

Moelis & Company’s hiring spree and rising revenue-related compensation are expected to hurt  bottom-line growth. Further, a delayed rebound in global deal-making is another concern. Nonetheless, global expansion initiatives and diverse operations across sectors and industries bode well.

Moelis & Company Price, Consensus and EPS Surprise

Moelis & Company price-consensus-eps-surprise-chart | Moelis & Company Quote

Currently, Moelis & Company has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of MC’s Peers

Morgan Stanley’s MS first-quarter 2025 earnings of $2.60 per share handily outpaced the Zacks Consensus Estimate of $2.23. The bottom line also rose 28.7% from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The company’s investment banking (IB) and wealth management business performance was solid. A rise in net interest income was another tailwind for MS. Yet, higher non-interest expenses and provisions were the undermining factors.

The Goldman Sachs Group, Inc.’s GS first-quarter 2025 adjusted earnings per share of $14.12 surpassed the Zacks Consensus Estimate of $12.71. This compares favorably with $11.58 reported in the year-ago quarter.

Goldman’s results benefited from solid growth in the Global Banking & Markets division. A decline in provisions was another positive. Yet, the decline in IB business and rise in expenses were concerning.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research