Analyst Note
| Michael Wong |Evercore had a fairly good fourth quarter, but revenue and earnings will likely go back to being subdued for the next several quarters. The company reported net income to common shareholders of $140 million, or $3.44 per diluted share, on $831 million of net revenue for the fourth quarter. Net revenue grew 44% from the previous quarter, as the fourth quarter has positive seasonality, but it was down 25% from the previous year’s record quarter. For the full year, net revenue declined 16% to $2.76 billion and net income declined 36% to $477 million. We don’t anticipate making a material change to our $158 fair value estimate for narrow-moat Evercore and assess shares are moderately undervalued.