- Evercore (NYSE:EVR) slumps 7.7% after Q3 misses on both adjusted EPS and revenue.
- Wolfe Research analyst Steven Chubak points out that Q3 advisory fees of $321M came in "well below" his $385M forecast.
- While Evercore Chairman Roger C. Altman notes backlog remains "strong" and the company continues to gain market share, he also notes "a certain softening in global transaction volumes."
- Q3 adjusted EPS of $1.26 fell short of the $1.63 consensus estimate; increased from $1.23 in the year-ago quarter.
- Q3 adjusted net revenue of $408.5M trails the consensus estimate of $475.9M and increased 6% Y/Y.
- Q3 adjusted operating margin of 20.8% narrowed by 180 basis points from the year-ago quarter.
- Q3 adjusted compensation ratio of 58.0% (below Wolfe's forecast of 58.9%) vs. 57.5% in Q3 2018.
- On the bright side, Wolfe's Chubak notes that trading commissions of $46.8M beat his estimate of $44.2M.
- Previously: Evercore EPS misses by $0.37, misses on revenue (Oct. 23)