Evercore issue up to 8 million shares to pay for the company. About 70% of the share consideration depends on ISI's future performance. The deal is expected to close in the fourth quarter of 2014. Evercore expects the deal to be EPS accretive in 2015.
TheStreet Ratings team rates EVERCORE PARTNERS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate EVERCORE PARTNERS INC (EVR) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- EVR's revenue growth has slightly outpaced the industry average of 2.9%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- EVERCORE PARTNERS INC has improved earnings per share by 34.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EVERCORE PARTNERS INC increased its bottom line by earning $1.41 versus $0.86 in the prior year. This year, the market expects an improvement in earnings ($2.57 versus $1.41).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 47.7% when compared to the same quarter one year prior, rising from $16.43 million to $24.27 million.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- The gross profit margin for EVERCORE PARTNERS INC is rather low; currently it is at 23.26%. Regardless of EVR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.94% trails the industry average.
- You can view the full analysis from the report here: EVR Ratings Report