PWP Earnings Prediction
The chart below shows how PWP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PWP sees a +3.64% change in stock price 10 days leading up to the earnings, and a +3.29% change 10 days following the report. On the earnings day itself, the stock moves by -3.77%. This data can give you a slight idea of what to expect for the next quarter's release.
PWP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
225.67M
6.11%
-18.89%
Gross Margin
87.67%
17.58%
-0.39%
Operating Margin
9.47%
145.82%
-26.59%
Net Margin
14.47%
172.57%
39.54%
EPS
0.39
269.57%
62.50%
No Data Available
PWP Earnings Analysis
Perella Weinberg Partners Corporation (PWP.O) Earnings Conference Call
Positive
Record Revenue Achievement: Full year 2024 revenues reached $878 million, marking a 35% year-over-year increase and the highest in the firm's history.
Record Equity Returns: A record $282 million was returned to equity holders in 2024, more than double the previous annual high, contributing to over $530 million returned since the public listing in 2021.
Cost Management Improvement: The adjusted non-compensation ratio improved to 18% in 2024, down from 22% the previous year, indicating better cost management relative to revenue growth.
Market Cap Milestone Achieved: The firm achieved a significant milestone with a market cap exceeding $2 billion and a stock price surpassing $20, reflecting strong investor confidence and performance.
Business Line Growth: All business lines reported growth in 2024, with particularly strong contributions from the U.S. business, which is expected to continue into 2025.
Negative
Compensation Margin Decline: Adjusted compensation margin decreased to 67% in 2024 from 70% in 2023, falling below the 68% target for the first nine months of 2024.
Rising Non-Compensation Expenses: Non-compensation expenses rose by 13% year-over-year to $162 million, exceeding original expectations primarily due to increased litigation costs and professional fees.
Bad Debt Expense Increase: The company reported a significant increase in bad debt expenses, which are not expected to recur, indicating potential underlying issues in revenue collection.
European Market Challenges: Despite record revenues of $878 million, the firm is still facing challenges in the European market, which lags behind the U.S. market with only $800 billion in M&A activity compared to $1.6 trillion in the U.S.
Expense Impact on Profitability: The firm anticipates continued elevated non-compensation expenses in 2025, which could impact overall profitability despite a projected moderation to single-digit growth.
PWP FAQs
How does PWP typically perform around its earnings report dates?
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PWP Earning Call Sentiment
Earnings call transcript: Perella Weinberg Q4 2024 revenue hits record
PWP.O
1.54%Positive
The earnings call highlights strong financial performance with a 35% revenue increase and no debt, alongside a record capital return to shareholders. Despite some challenges, like increased litigation costs and recruitment hurdles, the company is optimistic about growth in both M&A and non-M&A sectors. The Q&A section supports this positive outlook, with management indicating a strong restructuring market and potential growth in Europe. The firm's commitment to shareholder returns, coupled with optimistic guidance, suggests a positive stock price reaction over the next two weeks.
