Lazard Earnings: Remarkably Strong First Quarter, but Unsure If It Can Last

Narrow-moat Lazard reported record first-quarter net revenue, but most investment banking management teams have had a cautiously optimistic tone in their outlook for merger advisory. Lazard reported net income to common shareholders of $38 million, or $0.35 per diluted share, on $765 million of net revenue. Financial advisory revenue was a first-quarter record at $447 million, while asset-management revenue was its highest since the first quarter of 2022. We don’t anticipate making a material change to our $48 fair value estimate. We assess the shares as moderately undervalued.