Lazard (LAZ) Announces First-Quarter 2025 Earnings Results

Lazard Ltd (LAZ) today announced its financial results for the recent quarter, showcasing a notable performance in earnings per share (EPS). The company reported an EPS of $0.56, significantly surpassing the estimated $0.3093, marking a beat by $0.2507. However, Lazard’s revenue figures fell short of expectations, with reported revenue at $669,164, missing the estimated $634.3 million by a substantial margin.

Key Highlights:

• Lazard reported first-quarter 2025 net revenue of $648 million and adjusted net revenue of $643 million.
• Financial Advisory net revenue decreased by 19% compared to the first quarter of 2024.
• Asset Management net revenue decreased by 2% compared to the first quarter of 2024.
• Lazard launched three active ETFs in the U.S. and announced a strategic alliance with Arini Capital Management.
• The company returned $175 million to shareholders in the first quarter of 2025.
• CEO Peter R. Orszag emphasized Lazard’s focus on client service and long-term growth strategy.
• Lazard declared a quarterly dividend of $0.50 per share.
• Patrick McHenry, a former U.S. Congressman, joined Lazard as a Senior Advisor.
• Lazard is expanding its financial advisory operations into the United Arab Emirates, establishing Abu Dhabi as its main office in the country.

Summary:

Lazard, Inc. reported a net revenue of $648 million for the first quarter of 2025, with an adjusted net revenue of $643 million. The Financial Advisory segment saw a 19% decrease in net revenue compared to the same period in 2024, while Asset Management experienced a 2% decline. Despite these decreases, Lazard continued to expand its offerings by launching three active ETFs in the U.S. and forming a strategic alliance with Arini Capital Management to enhance its connectivity to private capital across Europe. CEO Peter R. Orszag highlighted the company’s commitment to serving clients and progressing towards its Lazard 2030 long-term growth strategy, stating, “First quarter performance was solid in the midst of an uncertain business environment.” In terms of financial management, Lazard returned $175 million to shareholders during the first quarter, which included dividends, stock repurchases, and satisfaction of employee tax obligations. The company maintained a strong financial position with $909 million in cash and cash equivalents as of March 31, 2025.

Lazard also declared a quarterly dividend of $0.50 per share, payable on May 16, 2025, reflecting its commitment to returning value to shareholders. The company made a strategic appointment by bringing on board Patrick McHenry, a former U.S. Congressman, as a Senior Advisor, leveraging his experience in U.S. economic and financial policy. In a significant expansion effort, Lazard is reinforcing its presence in the Middle East and North Africa (MENA) region by establishing Abu Dhabi as its main financial advisory office in the United Arab Emirates. This expansion underscores Abu Dhabi’s role as a leading global business and financial center and highlights Lazard’s commitment to deepening its presence in the MENA region. The establishment of this office is subject to regulatory approval and is part of Lazard’s broader strategy to serve as a trusted advisor in key global markets.

Lazard Ltd (LAZ) has experienced a rollercoaster ride in its stock price over the past year. Despite a modest annual increase of 5.82%, the stock has faced significant volatility, with a sharp decline of 25.33% over the past three months and a 15.30% drop in the last month alone. This recent downturn may be attributed to the company’s challenging financial metrics. Lazard’s price-to-earnings ratio stands at 14.72, which is relatively moderate, but the company’s earnings per share (EPS) has seen a concerning two-year compound annual growth rate (CAGR) of -20.58%. Additionally, the free cash flow has also contracted with a two-year CAGR of -3.67%, indicating potential liquidity issues. On a brighter note, Lazard’s revenue has grown at a two-year CAGR of 4.49%, and the company maintains a healthy return on invested capital of 12.46%, suggesting efficient use of its resources. However, with a net profit margin of 8.91%, the company may need to focus on improving profitability to stabilize its stock performance.

Lazard Ltd, together with its subsidiaries, operates as a financial advisory and asset management firm in North America, Europe, Asia, Australia, and Central and South America. It operates in two segments, Financial Advisory and Asset Management. The Financial Advisory segment offers various financial advisory services regarding mergers and acquisitions, restructurings, capital advisory, shareholder advisory, capital raising, sovereign advisory, and other strategic advisory matters. This segment serves corporate, partnership, institutional, government, sovereign, and individual clients across various industry areas, including consumers, financial institutions, healthcare and life sciences, industrials, power and energy/infrastructure, and real estate, as well as technology, telecommunication, and media and entertainment. The Asset Management segment offers a range of investment solutions, and investment and wealth management services in equity and fixed income strategies; asset allocation strategies; and alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries, and private clients. The company was founded in 1848 and is based in Hamilton, Bermuda.