Evercore Earnings: Fairly Strong Finish to the Year, but Full Year Showed Signs of M&A Deal Malaise

Evercore reported fairly good results in its seasonally strong fourth quarter, although full-year results still showed signs of the year's slowdown in capital markets activity. The firm reported full-year net income to common shareholders of $255 million, or $6.37 per diluted share, on $2.4 billion of net revenue. Net revenue in 2023 was 12% lower year over year 2022 and 26% lower than the abnormally high top-line result from 2021. Full-year net income was 46% lower than 2022 levels and 65% lower than Evercore reported in 2021, as the lower revenue this past year, along with the company's recent hiring of senior managing directors, increased the compensation ratio for 2023 to 68% from an average of 59% annually the previous five years.