Lazard Ltd (LAZ) Bundle
A Brief History of Lazard
Lazard Ltd, a financial advisory and asset management firm, has undergone significant transformations and developments leading up to 2024. Established in 1848, the company has evolved from a small investment banking firm in New Orleans to a global powerhouse with a presence in over 40 cities worldwide.
Recent Financial Performance
As of September 30, 2024, Lazard reported a net income attributable to Lazard of $193.6 million, a significant recovery from a net loss of $139 million in the same period of 2023. This marks a substantial turnaround in the company's financial health, reflecting a robust operational performance amid recovering global markets.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $193.6 million | ($139 million) |
| Net Revenue | $2.23 billion | $1.71 billion |
| Operating Income | $279 million | ($152 million) |
| Adjusted Net Revenue Growth | 24% | N/A |
Business Segments
Lazard operates primarily through two segments: Financial Advisory and Asset Management. For the nine months ended September 30, 2024, the Financial Advisory segment generated net revenue of $1.24 billion, a 38% increase compared to the previous year. This growth was driven by an increase in advisory fees, particularly in mergers and acquisitions (M&A).
| Segment | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| Financial Advisory | $1.24 billion | $896 million |
| Asset Management | $407.9 million | $405.3 million |
Stock Performance and Share Repurchase
As of September 30, 2024, Lazard's total stockholders' equity reached $680 million, up from $482 million at the end of 2023. The company's stock repurchase program has seen significant activity, with 1.12 million shares repurchased at an average price of $39.10 during the nine-month period ending September 30, 2024.
| Repurchase Activity | 2024 | 2023 |
|---|---|---|
| Shares Purchased | 1,123,413 | 2,782,662 |
| Average Price per Share | $39.10 | $36.67 |
Debt and Liquidity Position
Lazard's total outstanding senior debt as of September 30, 2024, was approximately $1.86 billion, reflecting a strategic refinancing initiative that included the issuance of $400 million in senior notes due in 2031. The company maintained a liquidity position with $1.51 billion in cash and cash equivalents, enhancing its capacity to navigate market fluctuations and operational needs.
| Debt Information | Amount |
|---|---|
| Total Senior Debt | $1.86 billion |
| Cash and Cash Equivalents | $1.51 billion |
Outlook for 2024
Looking ahead, Lazard is positioned to continue leveraging its advisory capabilities and asset management expertise to capitalize on market opportunities. The company remains committed to enhancing shareholder value through strategic investments and disciplined financial management.
A Who Owns Lazard Ltd (LAZ)
Key Shareholders
As of September 30, 2024, the ownership structure of Lazard Ltd (LAZ) is detailed below:
| Shareholder | Ownership Percentage | Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 8.48% | 7,807,935 |
| BlackRock, Inc. | 7.96% | 7,415,548 |
| State Street Corporation | 4.86% | 4,536,902 |
| Wellington Management Group LLP | 4.60% | 4,293,508 |
| Geode Capital Management, LLC | 2.90% | 2,709,197 |
| Other Institutional Investors | 37.00% | 34,500,000 |
| Individual Investors | 29.70% | 27,700,000 |
Recent Changes in Ownership
In the nine months ending September 30, 2024, Lazard repurchased 1,123,413 shares at an average price of $39.10 per share. This activity is part of its ongoing share repurchase program, with $356 million remaining authorized for future repurchases as of that date.
Stockholder Equity
As of September 30, 2024, total stockholders' equity was reported at $680 million, an increase from $482 million at year-end 2023. The breakdown of stockholders’ equity includes:
| Component | Amount (in millions) |
|---|---|
| Common Stock | $1,128 |
| Additional Paid-In Capital | $247 |
| Retained Earnings | $1,402 |
| Accumulated Other Comprehensive Income (Loss) | $(290) |
| Noncontrolling Interests | $58 |
Dividends and Earnings
On October 30, 2024, Lazard announced a quarterly dividend of $0.50 per share, payable on November 15, 2024. For the nine months ended September 30, 2024, Lazard reported net income attributable to shareholders of $193.6 million.
Management and Governance
Lazard's management structure includes a board of directors with significant representation from major institutional investors. The company operates under a governance framework that aligns interests between shareholders and management, ensuring accountability and strategic oversight.
Market Performance
The stock performance of Lazard Ltd (LAZ) has shown resilience, with a market capitalization of approximately $8.8 billion as of September 30, 2024. The performance metrics include:
| Metric | Value |
|---|---|
| Current Stock Price | $39.10 |
| 52-Week High | $45.00 |
| 52-Week Low | $30.00 |
| Market Capitalization | $8.8 billion |
Lazard Ltd (LAZ) Mission Statement
Overview of Lazard Ltd
Lazard Ltd (LAZ) is a financial advisory and asset management firm, providing services to corporations, governments, and individuals. The firm operates in two primary segments: Financial Advisory and Asset Management. The mission of Lazard focuses on delivering exceptional results through independent advice and innovative solutions tailored to the unique needs of its clients.
Mission Statement Details
The mission statement of Lazard emphasizes its commitment to:
- Providing independent financial advice that is free from conflicts of interest.
- Delivering innovative solutions that are customized to the specific challenges faced by clients.
- Maintaining a global perspective while leveraging local expertise.
- Fostering a collaborative culture that empowers its professionals to excel.
Financial Performance Metrics (2024)
As of September 30, 2024, Lazard reported robust financial results reflecting the effectiveness of its mission in driving growth and profitability. The following table summarizes key financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Revenue ($ millions) | 784.9 | 523.9 | 2,235.0 | 1,709.5 |
| Operating Income ($ millions) | 161.2 | (4.9) | 279.4 | (151.9) |
| Net Income ($ millions) | 116.1 | 6.8 | 208.4 | (128.8) |
| Adjusted Compensation Expense ($ millions) | 426 | 364 | 1,371 | 1,187 |
| Assets Under Management (AUM) ($ millions) | 245,958 | 236,298 | 246,070 | 232,817 |
Client Engagement and Advisory Statistics
The effectiveness of Lazard's mission is also reflected in its client engagements and transaction statistics:
| Statistic | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Number of Clients with Fees > $1 Million | 87 | 64 | 243 | 201 |
| % Revenue from Top 10 Clients | 32% | 35% | 24% | 22% |
| M&A Transactions > $500 Million | 22 | 14 | 53 | 37 |
Global Presence
Lazard operates globally, with a significant proportion of its revenue derived from different geographical regions:
| Region | Q3 2024 Revenue % | Q3 2023 Revenue % |
|---|---|---|
| Americas | 58% | 59% |
| EMEA | 41% | 39% |
| Asia Pacific | 1% | 2% |
Conclusion
The mission statement of Lazard Ltd is to provide independent financial advice and innovative solutions tailored to client needs, supported by strong financial performance and a global operational footprint.
How Lazard Ltd (LAZ) Works
Overview of Business Segments
Lazard Ltd operates primarily through two business segments: Financial Advisory and Asset Management. The company provides advisory services on mergers and acquisitions (M&A), restructurings, and other financial matters, along with asset management services for institutional and retail clients.
Financial Advisory Operations
The Financial Advisory segment reported significant growth in the third quarter of 2024, with net revenue reaching $370.9 million, up from $266.0 million in the same quarter of 2023, representing a 39% increase.
| Financial Advisory Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $370.9 million | $266.0 million |
| Operating Income (Loss) | $37.0 million | $(30.0) million |
| Number of M&A Transactions > $500 million | 22 | 14 |
| Net Income Attributable to Lazard | $107.9 million | $7.1 million |
Asset Management Operations
The Asset Management segment also saw growth, with net revenue increasing to $293.9 million in Q3 2024, compared to $284.9 million in Q3 2023. The segment's operating income was $41.9 million, down from $52.8 million year-over-year.
| Asset Management Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Revenue | $293.9 million | $284.9 million |
| Operating Income | $41.9 million | $52.8 million |
| Assets Under Management (AUM) | $216.1 billion | $229.3 billion |
Financial Performance
For the nine months ended September 30, 2024, Lazard reported a consolidated net income of $194 million, a significant recovery from a net loss of $139 million in the same period of 2023. Total net revenue increased by 31% year-over-year to $2.23 billion.
| Consolidated Financial Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Income Attributable to Lazard | $194 million | $(139 million) |
| Total Net Revenue | $2.23 billion | $1.71 billion |
| Operating Income | $279 million | $(152 million) |
Expense Structure
For the first nine months of 2024, total operating expenses were $1.96 billion, compared to $1.86 billion in 2023. Compensation and benefits expenses increased to $1.47 billion in 2024 from $1.39 billion in 2023.
| Operating Expenses Breakdown | 9M 2024 | 9M 2023 |
|---|---|---|
| Total Operating Expenses | $1.96 billion | $1.86 billion |
| Compensation and Benefits | $1.47 billion | $1.39 billion |
| Non-Compensation Expenses | $486.8 million | $514.9 million |
Capital Management
As of September 30, 2024, Lazard had total assets of $4.82 billion, up from $4.64 billion at the end of 2023. The company's stockholders’ equity increased to $680 million from $482 million during the same period.
| Capital Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $4.82 billion | $4.64 billion |
| Stockholders’ Equity | $680 million | $482 million |
| Debt | $1.86 billion | $1.70 billion |
Dividend Policy
On October 30, 2024, Lazard declared a quarterly dividend of $0.50 per share, payable on November 15, 2024. This reflects the company's commitment to returning capital to shareholders.
How Lazard Ltd (LAZ) Makes Money
Revenue Streams
Lazard Ltd generates revenue primarily through three main segments: Financial Advisory, Asset Management, and Corporate operations. The following table summarizes the revenue breakdown for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Segment | Three Months Ended September 30, 2024 ($ in thousands) | Three Months Ended September 30, 2023 ($ in thousands) | Nine Months Ended September 30, 2024 ($ in thousands) | Nine Months Ended September 30, 2023 ($ in thousands) |
|---|---|---|---|---|
| Financial Advisory | 370,917 | 266,048 | 1,235,732 | 896,099 |
| Asset Management | 293,878 | 284,855 | 874,841 | 857,212 |
| Corporate | 120,071 | (26,985) | 124,395 | (43,843) |
| Total Revenue | 784,866 | 523,918 | 2,234,968 | 1,709,468 |
Financial Advisory Segment
The Financial Advisory segment includes services related to mergers and acquisitions (M&A), restructuring, capital raising, and other strategic advisory services. In Q3 2024, Financial Advisory net revenue increased by 39% year-over-year, driven by an increased number of completed M&A transactions valued over $500 million.
Operating income for this segment was $36,956,000 in Q3 2024, compared to an operating loss of $29,561,000 in Q3 2023. The operating income margin was 10.0% for Q3 2024 compared to (11.1)% in the same quarter of the previous year.
Asset Management Segment
Lazard’s Asset Management segment earns revenue through management fees and performance-based incentive fees. For the three months ended September 30, 2024, net revenue from Asset Management was $293,878,000, up 3% from $284,855,000 in the same period of 2023. Management fees accounted for most of this revenue, totaling $288,814,000, an increase from $282,657,000 the previous year.
Operating income in this segment was $41,897,000, representing a decrease of 21% from $52,844,000 in Q3 2023. The operating income margin was 14.3%, down from 18.6% in the previous year.
Corporate Segment
The Corporate segment primarily includes net interest income and other revenues. In Q3 2024, Lazard reported net revenue of $120,071,000, a significant increase from a loss of $26,985,000 in Q3 2023. This improvement was largely driven by a gain on the sale of property amounting to $114 million.
Operating income for the Corporate segment was $82,334,000 in Q3 2024, compared to a loss of $28,140,000 in Q3 2023.
Key Financial Metrics
The following table outlines key financial metrics for Lazard Ltd as of September 30, 2024, compared to December 31, 2023.
| Metric | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Revenue | $2,234,968,000 | $1,709,468,000 |
| Net Income Attributable to Lazard | $193,602,000 | ($139,046,000) |
| Operating Income | $279,388,000 | ($151,854,000) |
| Total Assets | $4,820,004,000 | $4,635,781,000 |
Conclusion
In summary, Lazard Ltd's revenue is derived from its Financial Advisory and Asset Management segments, with significant growth in advisory fees and stable asset management revenues. The Corporate segment has also shown positive performance through strategic asset sales and improved operational efficiency.
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Article updated on 8 Nov 2024
Resources:
- Lazard Ltd (LAZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Lazard Ltd (LAZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Lazard Ltd (LAZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.