Investment banking firm Evercore (NYSE: EVR) will be reporting results this Wednesday morning. Here’s what to look for.
Evercore beat analysts’ revenue expectations last quarter, reporting revenues of $999.5 million, up 19.2% year on year. It was a mixed quarter for the company, with a significant miss of analysts’ EBITDA estimates.
Is Evercore a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Evercore’s revenue to decline 14.8% year on year, a reversal from the 41.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Evercore has a history of exceeding Wall Street’s expectations.
Looking at Evercore’s peers in the investment banking & brokerage segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Goldman Sachs delivered year-on-year revenue growth of 23%, beating analysts’ expectations by 11.5%, and Jefferies reported revenues up 8.5%, topping estimates by 1.1%. Goldman Sachs traded down 1.7% following the results while Jefferies was also down 1.3%.
Read our full analysis of Goldman Sachs’s results here and Jefferies’s results here.
Investors in the investment banking & brokerage segment have had steady hands going into earnings, with share prices flat over the last month. Evercore is down 1.6% during the same time and is heading into earnings with an average analyst price target of $332.20 (compared to the current share price of $257.49).
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