Lazard (NYSE:LAZ) Posts Quarterly Earnings Results, Misses Expectations By $0.06 EPS

Lazard (NYSE:LAZ) announced its quarterly earnings results on Thursday. The asset manager reported $0.36 earnings per share for the quarter, missing the consensus estimate of $0.42 by ($0.06), FiscalAI reports. Lazard had a net margin of 6.95% and a return on equity of 23.58%. The firm had revenue of $805.00 million for the quarter, compared to the consensus estimate of $844.23 million. During the same period last year, the business earned $0.56 EPS. Lazard’s revenue was up 8.8% on a year-over-year basis.

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

• Financial advisory momentum strengthened: Third-quarter revenue rose 11% year over year to a record $465 million, driven primarily by M&A. Lazard cited its best announced league-table position in more than a decade, conflict clearances up over 30%, and a probability-weighted 2027 pipeline more than twice the comparable 2026 pipeline.
• Campbell Lutyens acquisition is on track to add scale: Lazard expects the new Lazard CL private-capital advisory platform to generate approximately $500 million of revenue and be earnings accretive in 2027, before potential synergies. Management also sees early cost savings and meaningful cross-referral opportunities with Lazard’s M&A and private-capital businesses.
• Asset-management operating trends improved: Management fees rose 18% year over year in the third quarter, while first-nine-month gross inflows reached a record $54 billion. Investment performance also improved, with 70% of client assets outperforming benchmarks over one year and 67% over three years.
• Asset management still experienced net outflows: Third-quarter AUM was approximately flat sequentially at $284 billion, reflecting $2.3 billion of net outflows, partly offset by market appreciation. Lazard said it remains on track for positive net flows for the full year, supported by demand for quantitative equity, emerging markets, infrastructure, and ETF offerings.
• Potential compensation-policy changes could pressure near-term reported margins: Lazard is considering reducing deferred compensation, which would increase current-year accounting expense and raise the reported compensation ratio by a few percentage points. Management expects the change, if adopted, to improve compensation flexibility, reduce share dilution, and lower amortization expense over the following two to three years.

Lazard Stock Performance

Shares of LAZ opened at $37.43 on Friday. The firm has a market capitalization of $4.14 billion, a P/E ratio of 19.67, a PEG ratio of 1.25 and a beta of 1.47. The company has a debt-to-equity ratio of 1.87, a current ratio of 2.84 and a quick ratio of 2.84. Lazard has a one year low of $34.13 and a one year high of $58.75. The business has a fifty day moving average of $39.46 and a 200 day moving average of $42.97.

Lazard Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Monday, November 2nd will be issued a $0.50 dividend. The ex-dividend date of this dividend is Monday, November 2nd. This represents a $2.00 annualized dividend and a dividend yield of 5.3%. Lazard’s payout ratio is presently 98.04%.

Insiders Place Their Bets

In other Lazard news, CEO Peter Orszag sold 125,000 shares of the stock in a transaction dated Tuesday, August 25th. The stock was sold at an average price of $43.52, for a total value of $5,440,000.00. Following the transaction, the chief executive officer owned 260,942 shares of the company’s stock, valued at approximately $11,356,195.84. This represents a 32.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.95% of the company’s stock.

Key Headlines Impacting Lazard

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Lazard declared a quarterly dividend of $0.50 per share, payable November 13 to shareholders of record November 2. The $2.00 annualized payout and roughly 5.5% indicated yield may support investor interest. Lazard Declares Quarterly Dividend
• Positive Sentiment: Management said forward indicators were “really positive,” suggesting improving deal pipelines could benefit Lazard’s Financial Advisory and Asset Management businesses in coming quarters. Lazard CEO on Q3 Results
• Positive Sentiment: Lazard plans to close its Campbell Lutyens transaction in early November and anticipates approximately $500 million of Lazard Campbell Lutyens revenue in 2027, providing a potential medium-term growth catalyst. Lazard Campbell Lutyens Closing
• Neutral Sentiment: Lazard reported third-quarter adjusted net revenue of $805 million, while GAAP net revenue was $814 million. Revenue increased 8.8% year over year, but investors are focused on whether the growth can accelerate as transaction markets recover. Lazard Third-Quarter Results
• Negative Sentiment: Adjusted earnings per share were $0.36, below estimates ranging from $0.42 to $0.43 and down from $0.56 a year earlier. Revenue also fell short of the approximately $844 million consensus estimate, weighing on the shares. Lazard Misses Q3 Estimates
• Neutral Sentiment: Lazard is changing two key leadership roles, which could improve execution but introduces transition risk as the company integrates Campbell Lutyens and seeks to expand beyond traditional investment banking. Lazard Leadership Changes

Analyst Ratings Changes

Several brokerages have commented on LAZ. Keefe, Bruyette & Woods cut their target price on Lazard from $44.00 to $42.00 and set a “market perform” rating on the stock in a research note on Friday, July 24th. The Goldman Sachs Group set a $35.00 target price on shares of Lazard in a research note on Thursday. Morgan Stanley dropped their price target on shares of Lazard from $44.00 to $41.00 and set an “underweight” rating on the stock in a report on Thursday, October 8th. Citigroup reiterated a “market outperform” rating on shares of Lazard in a research note on Friday, July 24th. Finally, UBS Group decreased their price objective on shares of Lazard from $44.00 to $40.00 and set a “neutral” rating for the company in a report on Wednesday, October 7th. Four equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $46.62.

About Lazard

Lazard, Ltd. is a global financial advisory and asset management firm that serves corporations, financial institutions, governments, sovereign entities and individuals. Its Financial Advisory business provides advice on mergers and acquisitions, strategic matters, capital structure, restructuring, capital raising and other complex financial transactions.

Through its Asset Management business, Lazard offers investment strategies across equities, fixed income, private markets, alternatives and multi-asset portfolios.