Evercore Inc. (NYSE: EVR) stock experienced a 3% drop in pre-market trading on Wednesday following the release of its second-quarter financial results. The investment bank’s profit and revenue fell short of estimates, causing investor concern. However, Evercore remains optimistic about the future and has made strategic hires to position itself for an anticipated increase in deal-making.
Disappointing Financial Performance
For the three months ended June 30, Evercore reported a 61% decline in profit to $37.21 million, or 95 cents per share, compared to $95.63 million, or $2.33 per share, in the same quarter last year. This result fell significantly below FactSet’s estimated earnings of $1.26 per share. Additionally, the company’s revenue dropped to $503.6 million from $635.18 million, missing the analyst target of $512.9 million.
Strategic Hiring to Boost Deal-Making Capabilities
In response to market conditions and future opportunities, Evercore has been actively expanding its team of senior managing directors. During the quarter, seven advisory senior managing directors joined the firm, with an additional six committing to work at the bank. Evercore CEO John S. Weinberg commented on the firm’s hiring success, stating, “It has been an extraordinary time to recruit exceptional talent, and we are proud of our efforts this year. We believe this positions us well for when the market recovers.”
A Record Year for External Hiring
Senior chairman Robert Altman highlighted Evercore’s commitment to external hiring, especially at the senior managing director level. Altman stated that the bank has experienced more external hiring in 2023 than at any other point in its history.
Despite the disappointing financial results, Evercore remains focused on strengthening its capabilities and is confident in its ability to capitalize on future market opportunities.
