Earnings estimates for
Evercore Partners Inc.
) have been advancing since this provider of investment banking
advisory services reported its second straight quarterly earnings
beat in late October. This Zacks #2 Rank (Buy) currently enjoys a
decent dividend yield of 3.0%.
With a long-term expected earnings growth rate of 14%, reasonable
valuation and a strong dividend yield, Evercore Partners is a
promising pick for investors seeking both growth and income.
Third Quarter EPS Moves Higher
On October 25, Evercore Partners reported third-quarter 2012
adjusted earnings per share of 40 cents, topping the Zacks
Consensus Estimate of 34 cents by 18%, while it lagged the year-ago
earnings of 46 cents by 13%. Better-than-expected results were
mainly aided by prudent expense management.
Net revenues dipped 6.3% year over year to $153.0 million.
Operating margin stood at 20.0%, in line with the prior year.
However, the company's total expenses declined 7.3% to $138.8
million over the same period.
Rising Earnings Estimate Revisions
The Zacks Consensus Estimate for 2012 is up by 3.5% to $1.47 over
the past 60 days, as 4 of 6 estimates were revised higher. The
Zacks Consensus Estimate for 2013 has advanced 0.5% to $1.92, as 1
out of 6 estimates moved upward over the same time frame.
The Zacks Consensus Estimate for 2012 reflects year-over-year
growth of about 25%, while the expected growth rate for 2013 is
Steady Dividend Payment
Evercore Partners is one of the few investment banks that
maintained its dividend payment throughout the financial crisis.
Moreover, concurrent with the third-quarter earnings release, the
company announced a dividend hike of 10%.
Currently, the company pays a quarterly dividend of 22 cents per
share, representing a yield of 3.0%.
Shares of Evercore Partners currently trade at 20x 12-month forward
earnings, in line with the peer group average. Its price to book
ratio of 1.8 is at a significant premium to the industry median of
0.8. The company has a trailing 12-month ROE of 10.6%, compared
with the peer group average of 2.0%. This implies that the company
reinvests its earnings more efficiently than its industry peers.
Chart Shows Strength
Evercore Partners has witnessed strong price momentum since the
third quarter earnings release. Moreover, the company has been
continuously outperforming its 200-day moving average over the last
three months, exhibiting a steady growth trend. The year-to-date
return for the stock is approximately 11%.
About Evercore Partners
Headquartered in New York, Evercore Partners provides various
investment banking advisory and investment management services. The
company was founded in 1996 and conducts business worldwide. The
company has a market capital of about $863 million.
EVERCORE PARTNR (EVR): Free Stock Analysis
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