Evercore Earnings: Slow Start to the Year but Medium-Term Trajectory Still Positive

Evercore reported a relatively slow start to 2024, especially compared with other investment banks that had a strong first quarter, but we feel the medium-term outlook for earnings remains positive. The company reported net income of $86 million, or $2.09 per diluted share, on $581 million of net revenue. Net revenue increased 2% from a year ago. While the company's core advisory revenue was down 7% to $430 million, it was offset by a 143% increase in underwriting revenue to $56 million, as well as other revenue. Along with first-quarter earnings, the company announced an increase in its quarterly dividend 5% to $0.80 per share. We don't anticipate making a material change to our $177 per share fair value estimate for narrow-moat Evercore and assess the shares as being fairly valued.