Lazard (NYSE:LAZ) Announces Earnings Results, Misses Expectations By $0.10 EPS

Lazard (NYSE:LAZ) posted its quarterly earnings data on Friday. The asset manager reported $0.42 earnings per share for the quarter, missing the consensus estimate 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 analyst estimates of $707.42 million. During the same quarter in the previous year, the business posted $0.56 EPS. The company’s revenue 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 Stock Performance

Lazard stock traded down $3.23 during midday trading on Friday, reaching $45.27. 2,938,127 shares of the company’s stock were exchanged, compared to its average volume of 1,339,721. Lazard has a 52 week low of $38.67 and a 52 week high of $58.75. The company has a debt-to-equity ratio of 1.85, a quick ratio of 2.28 and a current ratio of 2.28. The firm 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. The stock’s 50-day simple moving average is $45.25 and its 200 day simple moving average is $48.97.

Lazard Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 22nd. Investors of record on Monday, May 11th will be issued a dividend of $0.50 per share. The ex-dividend date is Monday, May 11th. This represents a $2.00 dividend on an annualized basis and a yield of 4.4%. Lazard’s dividend payout ratio (DPR) is presently 91.74%.

Analyst Upgrades and Downgrades

A number of research firms have commented on LAZ. Zacks Research lowered shares of Lazard from a “hold” rating to a “strong sell” rating in a report on Friday, April 10th. The Goldman Sachs Group boosted their target price on Lazard from $40.00 to $45.00 and gave the company a “sell” rating in a research note on Tuesday, April 14th. UBS Group reduced their price target 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. Keefe, Bruyette & Woods reaffirmed a “market perform” rating and set a $47.00 price target (down from $62.00) on shares of Lazard in a research report on Wednesday, April 8th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Lazard in a report on Friday, March 27th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $52.50.

Insider Transactions at Lazard

In other news, CEO Christopher Hogbin sold 7,885 shares of the stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $40.37, for a total value of $318,317.45. Following the transaction, the chief executive officer directly owned 15,773 shares of the company’s stock, valued at $636,756.01. This represents a 33.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Peter Richard Orszag sold 69,170 shares of the stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $40.76, for a total transaction 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 approximately $8,597,995.92. This represents a 24.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 80,999 shares of company stock valued at $3,292,962 in the last quarter. 0.95% of the stock is currently owned by corporate insiders.

Institutional Trading of Lazard

Several hedge funds have recently added to or reduced their stakes in the company. Price T Rowe Associates Inc. MD increased its position in Lazard by 13.5% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 8,807,320 shares of the asset manager’s stock worth $427,685,000 after buying an additional 1,047,869 shares during the period. Balyasny Asset Management L.P. bought a new position in Lazard during the 2nd quarter worth $34,305,000. Alyeska Investment Group L.P. bought a new position in Lazard in the 3rd quarter valued at about $18,201,000. Mackenzie Financial Corp increased its holdings in Lazard by 1,065.3% in the 3rd quarter. Mackenzie Financial Corp now owns 347,564 shares of the asset manager’s stock valued at $18,334,000 after buying an additional 317,738 shares during the period. Finally, Squarepoint Ops LLC bought a new stake in shares of Lazard during the 4th quarter worth approximately $9,573,000. 54.80% of the stock is owned by institutional investors and hedge funds.

More Lazard News

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.