Lazard (NYSE:LAZ) Announces Quarterly Earnings Results

Key Points

• Lazard missed earnings expectations for the quarter, reporting EPS of $0.12 versus the $0.34 consensus, even though revenue of $786.47 million came in above estimates. Revenue was up 1.5% year over year, but profitability was pressured by a high tax rate.
• Financial Advisory showed improving momentum, with management citing a stronger pipeline, better conflict clearances, and the best announced league table position since 2014. The company expects the second half of the year to be stronger, especially in advisory.
• Asset Management delivered strong inflows, posting $7.4 billion of net inflows in the first half and a record $285 billion in assets under management, up 15% from a year earlier. Lazard also maintained its quarterly dividend at $0.50 per share, supporting income investors.

Lazard (NYSE:LAZ - Get Free Report) posted its quarterly earnings data on Thursday. The asset manager reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.34 by ($0.22), FiscalAI reports. Lazard had a return on equity of 29.30% and a net margin of 8.47%.The company had revenue of $786.47 million for the quarter, compared to the consensus estimate of $736.29 million. During the same quarter in the previous year, the firm posted $0.52 EPS. The business's revenue for the quarter was up 1.5% compared to the same quarter last year.

Here are the key takeaways from Lazard's conference call:

• Lazard reported firm-wide adjusted net revenue of $786 million in Q2 and $1.5 billion for the first half, with management saying the second half should be stronger than the first, especially in Financial Advisory.
• Financial Advisory momentum improved, with the best announced league table position since 2014, stronger conflict clearances, and a pipeline that management says is building faster than last year. The company also highlighted large transactions and continued strength in restructuring and private capital advisory.
• Asset Management had a strong first half, generating $7.4 billion of net inflows and reaching a record $285 billion in AUM, up 15% year over year. Management said client demand is broad-based across strategies and regions, and they remain on track for positive full-year net flows.
• Management said the Campbell Lutyens acquisition is on track to close later this year and should be accretive to earnings in 2027 and beyond, while expanding Lazard’s private capital advisory capabilities. They also said AI adoption is accelerating across the firm, but current AI spending remains modest.
• Q2 profitability was pressured by a 69.7% adjusted effective tax rate, which management called anomalous and linked to a catch-up adjustment on equity vesting. The company also kept compensation accruals elevated, so near-term margin improvement depends heavily on second-half revenue growth.

Lazard Price Performance

Shares of NYSE:LAZ traded down $1.17 on Thursday, hitting $42.41. The stock had a trading volume of 185,942 shares, compared to its average volume of 1,647,514. Lazard has a twelve month low of $38.67 and a twelve month high of $58.75. The company has a debt-to-equity ratio of 1.94, a quick ratio of 3.51 and a current ratio of 3.51. The firm's 50 day moving average price is $44.32 and its 200-day moving average price is $46.84. The company has a market capitalization of $4.74 billion, a price-to-earnings ratio of 16.80, a price-to-earnings-growth ratio of 0.64 and a beta of 1.43.

Lazard Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Monday, August 3rd will be issued a dividend of $0.50 per share. The ex-dividend date of this dividend is Monday, August 3rd. This represents a $2.00 dividend on an annualized basis and a dividend yield of 4.7%. Lazard's dividend payout ratio (DPR) is presently 79.05%.

Lazard News Roundup

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Lazard said second-quarter adjusted net revenue was $786 million, above expectations, and management said forward indicators are starting to translate into revenue and earnings, suggesting some improvement ahead. Lazard Reports Second Quarter and First Half 2026 Results
• Positive Sentiment: The company maintained a quarterly dividend of $0.50 per share, which supports income-focused investors. Lazard Declares Quarterly Dividend of 0.50 per Share
• Neutral Sentiment: Management also highlighted plans for leaner future deal teams with AI and continued focus on asset-management opportunities, which could help margins over time but is not an immediate earnings catalyst. Lazard CEO: Future Deal Teams Will Be Leaner With AI
• Negative Sentiment: Q2 earnings came in at $0.12 per share, well below estimates, and Reuters said profit plunged 91% year over year due to a higher tax rate and weaker financial-advisory revenue. Lazard profit plunges on elevated tax rate, financial advisory volatility
• Negative Sentiment: The company also announced over 80 managing director cuts, signaling continued restructuring pressure in the business. Lazard has cut over 80 managing director roles, CEO says

Analyst Ratings Changes

LAZ has been the subject of a number of recent research reports. Citizens Jmp cut their target price on Lazard from $65.00 to $60.00 and set a "market outperform" rating for the company in a research note on Friday, April 10th. The Goldman Sachs Group set a $40.00 price target on shares of Lazard in a report on Friday, June 12th. UBS Group restated a "neutral" rating and issued a $44.00 price objective on shares of Lazard in a research note on Tuesday, June 9th. Morgan Stanley reduced their price objective on shares of Lazard from $53.00 to $47.00 and set an "underweight" rating for the company in a report on Thursday, July 9th. Finally, Citigroup reiterated an "outperform" rating on shares of Lazard in a research report on Friday, April 10th. Four equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Lazard currently has an average rating of "Hold" and a consensus price target of $51.00.

Hedge Funds Weigh In On Lazard

Several institutional investors have recently added to or reduced their stakes in LAZ. Kestra Advisory Services LLC bought a new stake in Lazard during the fourth quarter worth about $26,000. IFP Advisors Inc raised its stake in shares of Lazard by 53.5% in the third quarter. IFP Advisors Inc now owns 643 shares of the asset manager's stock valued at $34,000 after acquiring an additional 224 shares during the last quarter. State of Wyoming bought a new position in shares of Lazard in the second quarter valued at approximately $38,000. Triumph Capital Management acquired a new position in shares of Lazard in the 3rd quarter worth approximately $42,000. Finally, US Bancorp DE boosted its holdings in shares of Lazard by 122.1% in the 3rd quarter. US Bancorp DE now owns 1,588 shares of the asset manager's stock worth $84,000 after acquiring an additional 873 shares in the last quarter. 54.80% of the stock is owned by institutional investors.

Lazard Company Profile

Lazard Ltd. NYSE: LAZ is a leading global financial advisory and asset management firm, offering a comprehensive suite of services to corporations, governments and individuals. Founded in 1848, Lazard has built a reputation for providing independent advice and innovative solutions in complex financial transactions. The firm is publicly traded on the New York Stock Exchange under the ticker symbol LAZ and maintains its headquarters in Hamilton, Bermuda.

In its Financial Advisory segment, Lazard assists clients with mergers and acquisitions, restructurings, capital structure optimization and strategic planning.

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