Asset management and financial advisory company Lazard walked out of Q1 2014 with some impressive numbers after a major spree of deals for the first few months of 2014 led to $81 million in net income. The figure is more than double what Lazard made last year and translates to 61 cents per share, handily beating analyst estimates of 54 cents per share.
Part of the strong results stem from a major jump in mergers and other corporate deals around the world, with over $1.1 trillion in mergers confirmed by April 25th – a ripe environment for a company like Lazard which provides financial advice on mergers in exchange for fees paid. According to Lazard CEO Kenneth Jacobs many companies have been biding their time waiting for a good opportunity to sell and buy, and 2014 provided the opening they needed.
But to give credit where it is due, Lazard did something correctly to come out on top of other boutique banks. Standard competitors Evercore Partners and Greenhill & Co. fared poorly this quarter, suffering a respective 12% and whopping 98% drops in net income compared to Q1 2013. Shares in Lazard have risen 3.8% so far this year, and many investing advisors have been bullish on their value since late 2013. In comparison, Evercore’s stock fell 10.6% and Greenhills has tumbled by 13% so far this year.
Blank Cheque 