PJT Partners (NYSE: PJT) reported Q2 EPS of $1.00, $0.32 better than the analyst estimate of $0.68. Revenue for the quarter came in at $233 million versus the consensus estimate of $185.37 million.

Second Quarter Overview

• Total Revenues of $233 million for second quarter 2020, up 40% from a year ago
  • Advisory Revenues of $193 million, up 45%
  • Placement Revenues of $35 million, up 23%
• Second quarter GAAP Pretax Income of $50 million and Adjusted Pretax Income of $55 million
• Second quarter GAAP Diluted EPS of $0.86 and Adjusted EPS of $1.00
• Repurchased approximately 177 thousand share equivalents during the quarter
  • Intend to repurchase an additional 202 thousand Partnership Units for cash in August 2020
• $247 million of cash, cash equivalents and short-term investments and no funded debt
• Appointed Grace Reksten Skaugen to the Company’s Board of Directors

Paul J. Taubman, Chairman and Chief Executive Officer, said, “The strength of our second quarter and first half results further demonstrates our significant progress in building a premier global advisory firm. While the depth and duration of this crisis remain uncertain, we view this as a unique time to continue investing in our clients, our people, our capabilities and our communities. We remain optimistic about both our near- and long-term prospects.”

COVID-19 Impact on Operations and Outlook

• The vast majority of the Company’s employees have been working remotely since mid-March 2020. There have been no material changes to the Company’s internal controls as a result of this new working environment. The Company has undertaken steps to allow a limited number of employees to return to office locations on a voluntary basis, following safety protocols issued from the respective governmental agencies for the Company’s offices. The Company is continuing to monitor guidance from health and governmental organizations to determine when a greater number of employees may be able to safely return to the office. However, the Company is prepared to operate in a remote work environment for the foreseeable future, if necessary.
• The Company’s financial condition is strong. The Company has substantial cash balances, currently has no debt, and has not identified any impairments. The Company also maintains access to a $40 million line of credit facility. While the Company currently has not experienced a material decline in the demand for its services, the Company believes COVID-19’s impact on its business, financial performance and operating results will be significantly driven by a number of factors that are unable to be predicted or controlled, such as the depth and duration of the pandemic and the impact on the U.S. and global economies. These external factors could have a material effect on the Company’s financial performance and operating results going forward.

For earnings history and earnings-related data on PJT Partners (PJT) click here.