Analyst Note| Michael Wong, CFA, CPA |
Evercore’s first half of 2022 results are relatively strong, but the company will likely experience revenue headwinds in the following quarters. The company reported net income to common shareholders of $95.6 million, or $2.33 per diluted share, on $631 million of net revenue. Net revenue in the second quarter was 8% lower from a year ago, and first half of 2022 revenue was flat with the first half of 2021. We expect to lower our fair value estimate for narrow-moat Evercore but also believe that our assessment will continue to be that shares are undervalued.