Lincoln International (NYSE:LCLN) Announces Earnings Results

Lincoln International (NYSE:LCLN) announced its quarterly earnings results on Thursday. The company reported $0.26 EPS for the quarter, topping the consensus estimate of $0.14 by $0.12, FiscalAI reports. The company had revenue of $225.69 million for the quarter.

Here are the key takeaways from Lincoln International’s conference call:

• Record Q2 revenue of $226 million rose 51% year over year, while adjusted net income increased 48%; growth was broad-based across investment banking and valuations and opinions.
• Management reported an improving M&A environment, a near-record and growing backlog, strong new-business activity, and expects normal positive seasonality in the second half, with Q4 typically contributing 30%–40% of annual revenue.
• The valuations and opinions business generated 35% year-over-year revenue growth, supported by 19% growth in portfolio companies valued and continuing demand from private-market retailization, more frequent reporting, and secondary transactions.
• Operating leverage improved the adjusted non-compensation ratio to 18.7% from 24% a year earlier, while the IPO strengthened the balance sheet to $149 million of net cash and enabled a quarterly dividend of $0.07 per Class A share.
• Management remains optimistic but cautioned that the recovery is uneven and exposed to macroeconomic and geopolitical disruptions; software activity continues to face headwinds, although it is showing early signs of improvement.

Lincoln International Stock Performance

NYSE LCLN traded up $2.60 during mid-day trading on Thursday, reaching $23.36. 878,314 shares of the stock were exchanged, compared to its average volume of 371,396. Lincoln International has a 1-year low of $20.05 and a 1-year high of $25.30. The firm’s fifty day simple moving average is $22.98.

Lincoln International Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be paid a dividend of $0.07 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.28 annualized dividend and a dividend yield of 1.2%.

Analyst Ratings Changes

A number of research analysts have recently issued reports on LCLN shares. The Goldman Sachs Group initiated coverage on shares of Lincoln International in a research note on Monday, June 15th. They set a “buy” rating and a $27.50 price target on the stock. Wolfe Research initiated coverage on Lincoln International in a report on Monday, June 15th. They issued an “outperform” rating and a $29.00 target price for the company. Zacks Research upgraded shares of Lincoln International to a “hold” rating in a research report on Friday, July 10th. Citigroup assumed coverage on shares of Lincoln International in a report on Monday, June 15th. They issued an “outperform” rating for the company. Finally, Wall Street Zen raised Lincoln International to a “hold” rating in a research note on Saturday, May 30th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $26.93.

Lincoln International Company Profile

We are a global independent investment banking advisory firm focused on the private capital markets. As a leader in advising private equity and private credit investors, private company business owners and other senior executives, our globally integrated platform allows us to deliver comprehensive, sector-focused advisory services to clients across key areas of the economy. Our experienced professionals provide meaningful and differentiated private capital markets expertise across our two segments, Investment Banking Advisory and Valuations and Opinions: Investment Banking Advisory Valuations and Opinions Mergers & Acquisitions Capital Advisory Private Funds Advisory Other Services •Sell-Sides •Debt Advisory •Continuation Vehicles •Strategic Consulting •Portfolio Valuations •Buy-Sides •Special Situations & •Single Asset and •Executive Peer Networks •Transaction Opinions & •Add-ons Restructuring Co-Investment Vehicles •Agency Member Network Board Advisory •Growth Capital & •Primary Funds •Disputes Advisory Minority Equity Since our founding in 1996, we have experienced significant growth achieved through investments in our talent, our platform, the complementary capabilities we offer—including our growing, recurring, and non-cyclical valuations business—and the strategic positioning of the firm.