Lazard (NYSE:LAZ) Announces Quarterly Earnings Results, Misses Estimates By $0.06 EPS

Lazard (NYSE:LAZ) announced its quarterly earnings results on Thursday. The asset manager reported $0.36 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.42 by ($0.06), FiscalAI reports. Lazard had a net margin of 5.55% and a return on equity of 20.76%. The business had revenue of $805.00 million during the quarter, compared to analyst estimates of $844.23 million. During the same period last year, the company earned $0.56 earnings per share. The business’s revenue for the quarter was up 8.8% compared to the same quarter last year.

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 Price Performance

Shares of LAZ traded down $0.07 during mid-day trading on Friday, hitting $37.23. The company’s stock had a trading volume of 2,608,638 shares, compared to its average volume of 1,658,947. The company has a current ratio of 2.66, a quick ratio of 2.84 and a debt-to-equity ratio of 1.80. Lazard has a 1-year low of $34.13 and a 1-year high of $58.75. The firm has a market capitalization of $4.12 billion, a P/E ratio of 22.57, a P/E/G ratio of 1.24 and a beta of 1.47. The firm has a 50-day simple moving average of $39.31 and a 200 day simple moving average of $42.93.

Lazard Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Monday, November 2nd will be given a dividend of $0.50 per share. The ex-dividend date is Monday, November 2nd. This represents a $2.00 annualized dividend and a yield of 5.4%. 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 on 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 completion of the transaction, the chief executive officer owned 260,942 shares in the company, 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 SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.95% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

LAZ has been the topic of several research reports. Weiss Ratings downgraded shares of Lazard from a “hold (c+)” rating to a “hold (c)” rating in a research report on Wednesday, July 29th. Wall Street Zen downgraded shares of Lazard from a “hold” rating to a “sell” rating in a research note on Saturday. The Goldman Sachs Group set a $35.00 target price on shares of Lazard in a research note on Thursday. Capital One Financial set a $38.00 price target on Lazard in a report on Tuesday, October 6th. Finally, Morgan Stanley decreased their price objective on Lazard from $41.00 to $40.00 and set an “underweight” rating for the company in a research report on Friday. Four equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Lazard currently has a consensus rating of “Hold” and an average target price of $46.50.

Trending Headlines about Lazard

Here are the key news stories impacting Lazard this week:

• Positive Sentiment: Lazard plans to complete the closure of Campbell Lutyens in early November and expects the combined business to generate approximately $500 million of revenue in 2027. The transaction could strengthen Lazard’s private-capital and fundraising capabilities, although execution and integration remain important. Campbell Lutyens transaction
• Positive Sentiment: Lazard declared its regular quarterly dividend of $0.50 per share, equivalent to $2.00 annually and a yield of roughly 5.3% based on the cited share price. The dividend is payable November 13 to shareholders of record November 2. Lazard quarterly results and dividend
• Neutral Sentiment: Management said forward indicators were “really positive,” offering some support for a recovery in deal activity and future revenue. However, investors appear focused on whether that pipeline can translate into stronger near-term profitability. Lazard CEO comments
• Neutral Sentiment: Reports on changes to two key leadership roles add a governance and execution consideration for investors, though the immediate financial impact is unclear. Leadership changes
• Neutral Sentiment: Lazard Global Total Return and Income Fund (NYSE: LGI), a separate closed-end fund, announced a $0.15340 monthly distribution payable November 24. This does not directly represent a dividend change for Lazard, Inc. (LAZ). LGI monthly distribution
• Negative Sentiment: Third-quarter adjusted EPS was $0.36, below the $0.42 consensus estimate, while adjusted revenue of $805 million missed expectations of approximately $844 million. EPS also fell from $0.56 a year earlier, deepening concerns about margin pressure and limited deal pull-forwards. Third-quarter earnings release
• Negative Sentiment: Morgan Stanley lowered its price target from $41 to $40 and maintained an “underweight” rating, signaling limited confidence in Lazard’s near-term earnings outlook despite the target remaining above the cited share price.

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.