PJT Partners (NYSE:PJT) Releases Earnings Results, Beats Expectations By $0.40 EPS

PJT Partners (NYSE:PJT) issued its earnings results on Tuesday. The financial services provider reported $1.97 earnings per share for the quarter, beating analysts’ consensus estimates of $1.57 by $0.40, FiscalAI reports. PJT Partners had a return on equity of 32.88% and a net margin of 10.57%.The company had revenue of $486.29 million for the quarter, compared to the consensus estimate of $425.28 million. During the same quarter in the prior year, the company earned $1.54 EPS. The firm’s quarterly revenue was up 19.5% on a year-over-year basis.

Here are the key takeaways from PJT Partners’ conference call:

• Record second-quarter and first-half results: Q2 revenue rose 20% to $486 million, adjusted pre-tax income increased 32% to $106 million, and adjusted EPS climbed 28% to $1.97. First-half revenue, adjusted pre-tax income, and EPS increased 24%, 39%, and 36%, respectively.
• Strategic advisory delivered record revenue, while mandate counts and the pre-announced pipeline reached record levels; mandates were up more than 20% year over year. Management expects strategic advisory to remain the largest dollar contributor to growth if macro conditions remain stable.
• Restructuring also posted record results, supported by sustained demand for liability management and restructuring advice. PJT ranked first in global and U.S. announced and completed restructurings, and management expects activity to remain elevated over the foreseeable future.
• PJT Park Hill revenue increased as strong growth in Private Capital Solutions, particularly secondary transactions, more than offset a challenging primary fundraising market. Management cited favorable secular trends, strong relative performance, and continued investment opportunities in PCS.
• Management expects full-year revenue growth to be below the 24% achieved in the first half, while non-compensation expense growth guidance increased to approximately 14% due to higher travel, professional fees, and AI and technology investments. The CFO transition is planned for October 1, when Arun Kalra will succeed Helen Meates.

PJT Partners Trading Down 1.5%

PJT stock traded down $2.47 during mid-day trading on Thursday, hitting $162.61. 78,138 shares of the company were exchanged, compared to its average volume of 387,284. The stock has a market capitalization of $4.20 billion, a PE ratio of 22.20 and a beta of 0.85. The business has a 50 day simple moving average of $159.06 and a 200-day simple moving average of $156.43. PJT Partners has a 1-year low of $127.73 and a 1-year high of $195.62.

PJT Partners Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Wednesday, September 2nd will be issued a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend is Wednesday, September 2nd. PJT Partners’s dividend payout ratio is currently 14.58%.

Wall Street Analysts Forecast Growth

PJT has been the topic of several recent research reports. The Goldman Sachs Group raised shares of PJT Partners from a “neutral” rating to a “buy” rating and set a $170.00 price objective on the stock in a research report on Wednesday, April 1st. Zacks Research upgraded PJT Partners from a “strong sell” rating to a “hold” rating in a research report on Monday, June 29th. Keefe, Bruyette & Woods lifted their target price on shares of PJT Partners from $185.00 to $195.00 and gave the company an “outperform” rating in a research note on Wednesday. Weiss Ratings reissued a “hold (c)” rating on shares of PJT Partners in a report on Friday, May 29th. Finally, UBS Group reissued a “neutral” rating and set a $176.00 price objective on shares of PJT Partners in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, PJT Partners presently has an average rating of “Hold” and an average price target of $179.33.

Insider Transactions at PJT Partners

In related news, General Counsel David Adam Travin sold 3,000 shares of the firm’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $152.43, for a total transaction of $457,290.00. Following the transaction, the general counsel directly owned 2,052 shares of the company’s stock, valued at approximately $312,786.36. This trade represents a 59.38% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Helen T. Meates sold 8,000 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $153.19, for a total value of $1,225,520.00. Following the completion of the sale, the chief financial officer owned 58,466 shares of the company’s stock, valued at approximately $8,956,406.54. This trade represents a 12.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 10.98% of the company’s stock.

Hedge Funds Weigh In On PJT Partners

Large investors have recently bought and sold shares of the company. Royal Bank of Canada raised its position in shares of PJT Partners by 45.7% during the first quarter. Royal Bank of Canada now owns 11,471 shares of the financial services provider’s stock worth $1,581,000 after acquiring an additional 3,596 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of PJT Partners by 57.7% in the 1st quarter. AQR Capital Management LLC now owns 7,330 shares of the financial services provider’s stock worth $1,011,000 after purchasing an additional 2,681 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in PJT Partners by 4.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,887 shares of the financial services provider’s stock valued at $1,915,000 after acquiring an additional 620 shares in the last quarter. Millennium Management LLC raised its stake in shares of PJT Partners by 1,394.5% in the first quarter. Millennium Management LLC now owns 52,563 shares of the financial services provider’s stock worth $7,247,000 after purchasing an additional 49,046 shares during the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in PJT Partners by 5.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 370,536 shares of the financial services provider’s stock valued at $51,090,000 after acquiring an additional 19,806 shares in the last quarter. 89.23% of the stock is currently owned by institutional investors.

PJT Partners Company Profile

PJT Partners is a global advisory-focused investment bank that delivers strategic advisory, restructuring and special situations, and capital solutions to corporations, partnerships, and governments. The firm operates through three primary business segments: Strategic Advisory, which covers mergers and acquisitions, shareholder advisory, and capital markets advisory; Restructuring and Special Situations, which provides advice on debt and liability management, distressed mergers and acquisitions, and financial restructurings; and Park Hill, the firm’s dedicated capital-raising and secondary advisory business for private equity, real estate, hedge funds, and infrastructure.

The Strategic Advisory practice at PJT Partners assists clients with complex transactions such as cross-border mergers, spin-offs, divestitures, and takeover defenses, drawing on deep industry expertise and global reach.