Lazard Earnings: Company in Growth Mode; Geographic Exposure Is a Factor to Keep in Mind

Narrow-moat-rated Lazard had strong results for 2024, and the environment still generally looks conducive to the company making progress with its growth strategy. The company reported net income to common shareholders of $280 million, or $2.68 per diluted share, on $3.05 billion of net revenue for the year. Net revenue increased by 21% from the previous year, and it was the company’s second-highest revenue year. Almost all the growth came from financial advisory, up 28% to $1.7 billion, with asset management only increasing 3% to $1.1 billion. We don’t expect to make a material change to our $49 fair value estimate for Lazard and assess shares are fairly valued.