Lazard, Inc. (NYSE:LAZ) reported stronger-than-expected third-quarter results on Thursday, fueled by record adjusted net revenue and solid gains across both its Financial Advisory and Asset Management businesses. The stock rose 1.97% in premarket trading following the announcement.
Adjusted earnings per share came in at $0.56, beating the analyst consensus of $0.44. Total revenue was $748 million, ahead of projections of $717.67 million. Adjusted net revenue reached an all-time high of $725 million, a 12% increase from the prior year.
Financial Advisory revenue led the way, climbing 14% year-over-year on an adjusted basis to $422 million. Asset Management adjusted net revenue also posted solid growth, rising 8% to $294 million, supported by record quarterly inflows and a 17% year-to-date increase in assets under management to $265 billion.
“Lazard’s long-term growth strategy continues to build momentum and produce results, with record Financial Advisory revenue and record Asset Management inflows year-to-date,” said Peter R. Orszag, CEO and Chairman. “We see an increasingly constructive environment for both of our businesses, with substantial client engagement firmwide.”
The company held its adjusted compensation ratio steady at 65.5%, unchanged from the previous quarter, while its adjusted non-compensation ratio improved to 20.5% from 21.4% in the same quarter of 2024.
Lazard returned $60 million to shareholders during the period through dividends and buybacks and declared a quarterly dividend of $0.50 per share, payable on November 14.
Looking to the months ahead, management expressed confidence in the firm’s outlook, noting that they expect to welcome Chris Hogbin as the new CEO of Asset Management later this year to “further accelerate progress toward our vision for the future of Lazard.”