Will Lazard Ltd (NYSE:LAZ) Performs Better Than Peers, Can It Exceed Estimates Again?

Boston, MA 05/05/2014 (wallstreetpr) – Lazard Ltd (NYSE:LAZ) experienced a stronger Q12014 than expected. The company linked the high profit in the quarter on the doubling of merger fees and the encouraging performance in the assets management segment.

The financial advisory company reported Q1 net income of $80.8 million or $0.61 per share. That compared with net income of $15.4 million or $0.12 per share in the corresponding quarter of 2013. The profit exceeded the $0.54 per share in the average estimate from 13 analysts.

About revenue, Lazard Ltd (NYSE:LAZ) reported 64 percent increase in revenue to $272.5 million. The big jump in revenue was supported by the double jump on the fees charged on merger deals in the quarter. The company observed merger deal of more than $239 million, a record figure in any first quarter. Based on the big merger fees in Q1, operating revenue in the quarter came in at $540.2 million, increasing 31 percent.

Also, according to the management, an increase in the merger revenue gained support, albeit partially, from the fact that the first three months of fiscal 2013 experienced low level of deal completions.

Lazard Ltd (NYSE:LAZ) enjoyed good Q1 performance compared with peers Greenhill & Co Inc (NYSE:GHL) and Evercore Partners Inc (NYSE:EVR) that reported profit figures that missed estimates.

Asset management

The record profit figures experienced in Q1 also gained support from a robust asset management segment. Lazard Ltd (NYSE:LAZ) reported 9 percent revenue jump to $262.3 million from asset management activities. The asset management revenue in the latest quarter showed the biggest first quarter figure. Also, the company benefited from a strong asset management segment in the previous year, generating the majority of revenue in the year from the segment than merger deals.

Exceeding expectations

In the environment of increased merger activities as can be seen in the widespread quest for deals in the pharmaceutical industry coupled with a robust asset management, Lazard Ltd (NYSE:LAZ) looks poised to benefit from this mix of business opportunities. Moreover, the company believes that its sound internal improvements will support bottom-line growth going forward.

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. We may be compensated for posting this content on our website by EDM Media LLC. For questions, comments or suggestions please contact ir@edm.media.

Published by Duncan Oleinic

Duncan Oleinic is from New Yourk. After graduating with a degree in physics, he began his career as an analyst in a broking firm. Through this experience he was able to advance to the role of correspondent for a U.S based financial news provider, where he worked from 2001 to 2007. He subsequently joined a merchant banking firm as a financial analyst focused on valuing unlisted companies in the sub-continent. Over the course of his two years here, he performed valuations of several media companies which were later acquired by peers.

Recent Stories

SignUp Now For Our Featured Newsletter