Perella Weinberg Partners (NASDAQ:PWP) Posts Quarterly Earnings Results, Beats Estimates By $0.22 EPS

Key Points

• Perella Weinberg Partners beat quarterly earnings estimates: EPS was $0.39 versus the $0.17 consensus, while revenue rose 53% year over year to $251.37 million, driven by strong M&A activity.
• Future revenue visibility improved significantly as announced and pending backlog nearly tripled from the prior year, with broader backlog measures also showing double-digit growth. Management expects some backlog to convert in early 2027.
• The firm maintained its 67% full-year adjusted compensation margin target, ended the quarter with $150 million in cash and no debt, and reiterated plans for long-term standalone growth despite market risks from sharp interest-rate moves.

Perella Weinberg Partners (NASDAQ:PWP - Get Free Report) announced its earnings results on Thursday. The company reported $0.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.17 by $0.22, Zacks reports. Perella Weinberg Partners had a net margin of 3.19% and a negative return on equity of 35.84%. The company had revenue of $251.37 million during the quarter, compared to analysts' expectations of $172.82 million.

Here are the key takeaways from Perella Weinberg Partners' conference call:

• Third-quarter revenue rose 53% year over year to $251 million, led by M&A, which nearly doubled from the prior-year quarter and increased more than 40% year to date. Management cited strength in consumer, industrials, energy, and financial institutions.
• Visibility into future revenue improved, with announced and pending backlog nearly three times last year’s level, total booked plus announced and pending backlog up about 30%, and gross backlog under engagement letters up 40%. Management expects some of this backlog to convert in early 2027.
• The firm reported broad-based activity, including a 50% increase in fee-paying clients and nearly 80% growth in fee events exceeding $5 million. The Gleacher Shacklock acquisition has already contributed six announced U.K. transactions since closing on September 1.
• Management reiterated its 67% full-year adjusted compensation margin target and expects full-year adjusted non-compensation expenses to decline by a single-digit percentage from 2025. The company ended the quarter with $150 million of cash and no debt.
• Perella Weinberg said it is focused on long-term standalone growth through hiring, internal promotions, and selective acquisitions, while denying that it has initiated a sale process. Executives expect higher rates to be manageable if increases are gradual, but warned that sharp rate moves could pressure valuations and highly leveraged transactions.

Perella Weinberg Partners Stock Performance

Shares of Perella Weinberg Partners stock traded up $0.78 on Thursday, reaching $13.72. 1,556,500 shares of the company's stock were exchanged, compared to its average volume of 1,291,076. The firm's 50-day moving average is $14.85 and its two-hundred day moving average is $17.48. The company has a market capitalization of $1.29 billion, a P/E ratio of 52.66 and a beta of 1.63. Perella Weinberg Partners has a 52 week low of $12.13 and a 52 week high of $25.92.

Perella Weinberg Partners Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 10th. Shareholders of record on Friday, August 28th were paid a $0.07 dividend. The ex-dividend date of this dividend was Friday, August 28th. This represents a $0.28 annualized dividend and a yield of 2.0%. Perella Weinberg Partners's payout ratio is 107.69%.

Analyst Ratings Changes

PWP has been the topic of a number of recent research reports. The Goldman Sachs Group raised their price objective on Perella Weinberg Partners from $14.50 to $16.00 and gave the stock a "sell" rating in a research note on Monday, August 3rd. Weiss Ratings cut Perella Weinberg Partners from a "hold (c)" rating to a "hold (c-)" rating in a research report on Wednesday, October 14th. Keefe, Bruyette & Woods reaffirmed an "outperform" rating and issued a $21.00 price target (up from $19.00) on shares of Perella Weinberg Partners in a research note on Monday, August 3rd. Finally, Wall Street Zen downgraded shares of Perella Weinberg Partners from a "buy" rating to a "hold" rating in a research note on Saturday, October 3rd. Two research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $22.00.

Insider Buying and Selling

In other news, CEO Andrew Bednar sold 77,753 shares of the company's stock in a transaction dated Friday, August 7th. The shares were sold at an average price of $17.41, for a total transaction of $1,353,679.73. Following the transaction, the chief executive officer owned 1,061,260 shares in the company, valued at approximately $18,476,536.60. This represents a 6.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 235,697 shares of company stock valued at $4,080,379 in the last ninety days. Company insiders own 26.10% of the company's stock.

Perella Weinberg Partners Company Profile

Perella Weinberg Partners NASDAQ: PWP is an independent investment banking and financial services firm that provides strategic and financial advice to corporations, financial institutions, governments, and other organizations. The firm focuses on complex, high-value transactions and situations that require specialized advice and senior-level expertise.

Its services include mergers and acquisitions, strategic transactions, financial restructurings, capital markets advisory, and private capital advisory.

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