Lincoln International (NYSE:LCLN) Announces Earnings Results

Lincoln International (NYSE:LCLN) issued its earnings results on Thursday. The company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.12, FiscalAI reports. The firm had revenue of $225.69 million during 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 Trading Up 4.4%

Shares of LCLN stock traded up $1.03 during trading on Friday, hitting $24.45. The company had a trading volume of 445,003 shares, compared to its average volume of 397,859. The business’s 50-day simple moving average is $23.01. Lincoln International has a 52 week low of $20.05 and a 52 week high of $25.30.

Lincoln International Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a $0.07 dividend. This represents a $0.28 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Tuesday, September 1st.

Analyst Ratings Changes

LCLN has been the subject of a number of research reports. The Goldman Sachs Group started coverage on shares of Lincoln International in a research report on Monday, June 15th. They set a “buy” rating and a $27.50 target price for the company. BMO Capital Markets began coverage on shares of Lincoln International in a report on Monday, June 15th. They set a “market perform” rating and a $26.00 target price on the stock. Wolfe Research started coverage on Lincoln International in a research report on Monday, June 15th. They issued an “outperform” rating and a $29.00 price target for the company. Morgan Stanley set a $28.00 target price on Lincoln International in a research note on Friday. Finally, Evercore initiated coverage on shares of Lincoln International in a research note on Monday, June 15th. They set an “in-line” rating and a $25.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $27.07.

About Lincoln International

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.