Lazard Q2 Earnings Top Estimates, Advisory Revenue & AUM Rise Y/Y

Lazard Inc.’s LAZ second-quarter 2025 adjusted earnings per share of 52 cents beat the Zacks Consensus Estimate of 38 cents. This compared favorably with earnings of 49 cents per share in the year-ago quarter.Lazard’s results were positively impacted by increases in revenues in the financial advisory and asset management sectors. A rise in assets under management (“AUM”) balances was another positive. However, a decrease in revenues in the corporate segment and elevated operating expenses acted as a spoilsport.Lazard’s net income (GAAP) was $55.3 million, which rose 10.9% from the prior-year quarter's level.Lazard’s Revenues Increase Y/YQuarterly operating revenues were $769.8 million, which rose 12.4% year over year. Further, the top line surpassed the Zacks Consensus Estimate of $688.5 million.Lazard’s Expenses IncreaseOperating expenses were $702.9 million, up 13.1% year over year.The ratio of adjusted compensation expenses to operating revenues was 65.5, down from the year-earlier quarter’s 66. The ratio of adjusted non-compensation expenses to operating revenues was 20.4, down from the year-ago quarter’s 21.7.Lazard’s Segmental PerformanceFinancial Advisory: The segment’s adjusted operating revenues were $491.4 million, up 20.4% from the year-earlier quarter.Asset Management: Segmental adjusted operating revenues of $268.5 million increased 1.2% from the prior-year quarter.Corporate: Adjusted operating revenues from this segment were $10 million, down 12.8% from the year-earlier quarter.LAZ’s AUM RisesAs of June 30, 2025, the total AUM was $248.4 billion, which increased 1.5% from the prior-year quarter.LAZ’s second quarter witnessed a market appreciation of $11.9 billion, foreign exchange appreciation of $8.4 billion and net inflows of $0.7 billion.The average AUM in the reported quarter was $238.5 billion, down 2.8% year over year.Lazard’s Balance Sheet Position StrongThe company’s cash and cash equivalents totaled $978.3 million as of June 30, 2025, up 7.7% from the prior quarter. Stockholders’ equity was $786.5 million, up 21.3% sequentially.LAZ’s Share Repurchase UpdateIn the reported quarter, Lazard repurchased 0.9 million shares at an average price of $46.44 per share.As of June 30, 2025, roughly $160 million of authorization remained available for repurchase.Our View on LAZLazard is focused on growing organically, as evidenced by an increase in revenues in the financial advisory and asset management segments. A strong liquidity position, along with higher AUM, will also aid its financials in the upcoming period. However, an unfavorable debt/equity ratio will likely make capital distributions unsustainable.Lazard, Inc. Price, Consensus and EPS Surprise Lazard, Inc. price-consensus-eps-surprise-chart | Lazard, Inc. QuoteCurrently, Lazard carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of Other Asset ManagersBlackstone’s BX  second-quarter 2025 distributable earnings of $1.21 per share surpassed the Zacks Consensus Estimate of $1.10. The figure reflects a rise of 26% from the prior-year quarter.BX’s results benefited from higher segment revenues and a rise in AUM balance. However, an increase in GAAP expenses was a headwind.BlackRock’s BLK second-quarter 2025 adjusted earnings of $12.05 per share handily surpassed the Zacks Consensus Estimate of $10.66. The figure reflects a rise of 16% from the year-ago quarter.BLK’s results benefited from a rise in revenues. AUM witnessed robust growth, reaching a record high of $12.52 trillion, driven by net inflows, market appreciation, and a favorable foreign exchange impact. However, higher expenses acted as a headwind.#1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blackstone Inc. (BX): Free Stock Analysis Report BlackRock (BLK): Free Stock Analysis Report Lazard, Inc. (LAZ): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks