Lazard (NYSE:LAZ) Releases Earnings Results, Misses Estimates By $0.10 EPS

Key Points

• Lazard reported Q1 EPS of $0.42, missing consensus by $0.10, and revenue of $673M versus estimates near $707M, prompting a selloff on above‑average volume.
• The firm agreed to acquire Campbell Lutyens to create Lazard CL, a mostly stock deal management says should be EPS‑accretive and drive roughly $500M of combined revenue by 2027, with closing expected this year.
• Asset Management momentum is a bright spot—adjusted net revenue rose 17% with about $9B of net inflows and AUM near $259B, though near‑term expense pressure pushed the adjusted compensation ratio to 69.9%.

Lazard (NYSE:LAZ - Get Free Report) announced its quarterly earnings results on Friday. The asset manager reported $0.42 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.52 by ($0.10), Briefing.com reports. Lazard had a net margin of 7.49% and a return on equity of 33.04%. The company had revenue of $673.00 million during the quarter, compared to analysts' expectations of $707.42 million. During the same quarter in the prior year, the business earned $0.56 EPS. The business's revenue for the quarter was up 16.8% compared to the same quarter last year.

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

• Lazard is acquiring Campbell Lutyens to form Lazard CL, creating a leading global private capital advisory franchise expected to drive roughly $500M of combined 2027 revenue and to be EPS‑accretive in 2027; the deal is primarily stock consideration with deferred/earn‑out optionality and aims to close this year.
• Asset Management momentum accelerated — adjusted net revenue rose 17% to $309M, the business recorded net inflows of $9B (the largest quarterly inflows in ~20 years), AUM of ~$259B, and management fees up 25% YoY with an average fee rate around 44.6 bps.
• Financial Advisory was lumpy in Q1 (adjusted net revenue $356M, down 4%) as several large transactions slipped later in the year, but materially higher conflict clearances (>$5B deals up ~50% YoY) and active client engagement point to a constructive pipeline that is sensitive to geopolitical developments.
• Expense pressure in Q1 pushed the adjusted compensation ratio to 69.9% (adjusted comp $471M); management expects full‑year comp closer to ~65.5% and is targeting operational efficiencies, but near‑term margin leverage remains a concern.

Lazard Price Performance

NYSE LAZ traded down $3.23 on Friday, reaching $45.27. 2,938,127 shares of the stock traded hands, compared to its average volume of 1,339,721. The firm's fifty day simple moving average is $45.25 and its 200 day simple moving average is $48.97. The company has a quick ratio of 2.28, a current ratio of 2.28 and a debt-to-equity ratio of 1.85. The company has a market cap of $5.06 billion, a price-to-earnings ratio of 20.77, a P/E/G ratio of 0.42 and a beta of 1.42. Lazard has a 12 month low of $38.67 and a 12 month high of $58.75.

Lazard Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Monday, May 11th will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 4.4%. The ex-dividend date is Monday, May 11th. Lazard's dividend payout ratio is currently 91.74%.

Analyst Ratings Changes

Several equities analysts have weighed in on the stock. UBS Group dropped their target price on shares of Lazard from $48.00 to $45.00 and set a "neutral" rating for the company in a report on Wednesday, April 8th. Weiss Ratings reissued a "hold (c)" rating on shares of Lazard in a report on Friday, March 27th. Keefe, Bruyette & Woods reaffirmed a "market perform" rating and issued a $47.00 target price (down from $62.00) on shares of Lazard in a research report on Wednesday, April 8th. Citigroup reiterated an "outperform" rating on shares of Lazard in a research note on Friday, April 10th. Finally, Wall Street Zen downgraded shares of Lazard from a "buy" rating to a "hold" rating in a research report on Saturday, March 14th. Three analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, Lazard currently has an average rating of "Hold" and a consensus target price of $52.50.

Insider Activity

In other Lazard news, CEO Peter Richard Orszag sold 69,170 shares of the firm's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $40.76, for a total value of $2,819,369.20. Following the completion of the transaction, the chief executive officer directly owned 210,942 shares in the company, valued at $8,597,995.92. This trade represents a 24.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Christopher Hogbin sold 7,885 shares of the firm's stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $40.37, for a total transaction of $318,317.45. Following the sale, the chief executive officer owned 15,773 shares of the company's stock, valued at approximately $636,756.01. This represents a 33.33% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 80,999 shares of company stock valued at $3,292,962. Insiders own 0.95% of the company's stock.

Hedge Funds Weigh In On Lazard

Several large investors have recently bought and sold shares of the stock. NewEdge Advisors LLC raised its stake in shares of Lazard by 455.3% in the 4th quarter. NewEdge Advisors LLC now owns 4,459 shares of the asset manager's stock valued at $217,000 after buying an additional 3,656 shares in the last quarter. Amundi acquired a new position in shares of Lazard in the 4th quarter worth approximately $278,000. State of Wyoming raised its holdings in shares of Lazard by 353.5% in the 4th quarter. State of Wyoming now owns 3,673 shares of the asset manager's stock worth $178,000 after buying an additional 2,863 shares in the last quarter. Private Advisor Group LLC acquired a new position in shares of Lazard in the 3rd quarter worth approximately $226,000. Finally, Gamco Investors INC. ET AL acquired a new position in shares of Lazard in the 3rd quarter worth approximately $211,000. 54.80% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Lazard

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Strategic acquisition — Lazard agreed to buy Campbell Lutyens to create "Lazard CL," expanding its private-capital advisory capabilities and positioning the firm as a leader in fund placement and secondary advisory, which could boost long-term fee pool and cross‑sell opportunities. Article Title
• Positive Sentiment: Asset-management strength — Adjusted net revenue for Asset Management rose 17% YoY with positive net flows of $9 billion; Lazard said the asset-management business drove much of the profit increase this quarter. This supports recurring-fee growth and margin resilience. Article Title
• Positive Sentiment: Dividend — Board declared a $0.50 quarterly dividend (4.4% yield on current levels), payable May 22; a healthy yield can support shareholder returns and investor sentiment. Article Title
• Neutral Sentiment: GAAP vs. adjusted metrics — Lazard reported first-quarter net revenue of $757M and GAAP net income of $101M ($0.91 per share), while adjusted net revenue and the EPS metric investors tracked differ; reconcilement between GAAP and adjusted figures may explain mixed market reaction. Article Title
• Negative Sentiment: Earnings and revenue missed estimates — Reported EPS of $0.42 missed consensus ~$0.52 and revenue of $673M missed estimates near $707M; missing both top- and bottom-line expectations is the primary catalyst for the stock decline as it shows near-term operating pressure vs. Street models. Article Title
• Negative Sentiment: Market focus and volume — Shares moved lower on the earnings miss with above-average volume, suggesting investors are prioritizing near-term earnings shortfalls and uncertainty over integration/timing of growth from the acquisition. Article Title

About Lazard

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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