UPDATE: Greenhill & Co., Inc. (GHL) Beats Q2 EPS by 4c, Sales Beat

(Updated - July 28, 2014 4:09 PM EDT)

Greenhill & Co., Inc. (NYSE: GHL) reported Q2 EPS of $0.27, $0.04 better than the analyst estimate of $0.23. Revenue for the quarter came in at $64 million versus the consensus estimate of $55.81 million.

"Transaction activity in the market as a whole has continued to develop in a manner consistent with our comments a quarter ago. M&A completions, which are the main driver of revenue for advisory work, are still lower than they were in the first half of last year, whether measured by the number of transactions or by aggregate deal volume. At the first half run rate, the full year 2014 would have completed transaction data essentially unchanged from that of the past few years and well below the level prior to the financial crisis. On the other hand, data for transaction announcements, which are indicative of future potential revenue, is more positive. While the number of year to date transaction announcements has not increased materially from its weak level last year, aggregate deal volume has risen sharply as a result of a relatively small number of very large transactions. Based on our current interactions with clients, our expectation is that this increase in announced transaction volume will be sustained, and that as clients respond to changing industry dynamics resulting from large strategic transactions, the upturn in M&A will ultimately be more broadly reflected in the number of transactions being announced as well as in strong aggregate deal volume. Given our 100 percent focus on advisory work and our history of expense discipline, all metrics in our business -- revenue growth, productivity, profitability and return of cash to shareholders -- are poised to benefit strongly as and when a broad based recovery in transaction announcements, and ultimately completions, develops further," Robert F. Greenhill, Chairman, said.

For earnings history and earnings-related data on Greenhill & Co., Inc. (GHL) click here.

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