Evercore Partners said on Thursday that profit rose 19 percent in the second quarter, as its core advisory business posted strong results.
The investment bank reported that adjusted net income rose to $21.2 million from $17.8 million in the period a year earlier. That amounts to 49 cents a share, topping the average analyst estimate of 48 cents a share, according to Thomson Reuters.
Those numbers exclude some accounting charges related to the firm’s 2006 initial public offering. Using generally accepted accounting principles, the firm’s profit was $7.9 million, more than triple the result in the period a year earlier.
Evercore benefited from the closing of more of its assignments during the quarter, which meant the full payout of investment banking fees. It and other independent investment banks have been striving to take away advisory work from bigger rivals.
“Evercore continues to grow and gain market share,” Roger Altman, the firm’s executive chairman, said in a statement. “Yes, the financial market environment is a challenging one, but our own backlog is strong.”
Chip East/Bloomberg NewsRoger Altman, executive chairman of Evercore Partners.The firm said its core investment banking business pulled in $151.2 million in revenue for the quarter, up 35 percent from the year-ago period. Among the assignments it advised on that were announced during the quarter were the Bristol-Myers Squibb $6.8 billion takeover of Amylin and the AOL sale of a major patent portfolio to Microsoft for $1.1 billion.
Its investment management business, however, reported a 25 percent year-over-year decline in revenue, to $20.9 million. Its assets under management fell 27 percent during that time, to $11.8 billion, because of net outflows and market depreciation.
Evercore said its compensation payout as a percentage of revenue was 60 percent, roughly flat from the same period last year.