Moelis Q3 adjusted EPS beats estimates amid headcount expansion
MC•Moelis reported Q3 adjusted EPS of $0.75, above the $0.72 estimate, while adjusted revenue of $425.58 million rose 13% year over year but missed the $437.11 million estimate.
1. Quarterly results
Moelis reported Q3 adjusted revenue of $425.58 million, up 13% year over year, and adjusted EPS of $0.75. Adjusted revenue missed analyst expectations of $437.11 million, while adjusted EPS beat the $0.72 estimate.
2. Growth and costs
The company said revenue growth was driven by higher average fees per completed transaction. It cited headcount expansion, including 13 new Managing Directors in key sectors, as part of its growth strategy, and said compensation and benefits expenses rose due to increased headcount.
3. Outlook
Moelis said it is well positioned to capitalize on growth opportunities because of a record pipeline, while cautioning that quarterly results may not indicate future performance due to transaction timing. It did not provide specific financial guidance for upcoming quarters or the full year.
