Adds revenue estimate in paragraph 8; profit estimate in paragraph 9
April 25 (Reuters) - Lazard's LAZ.N first-quarter profit exceeded estimates on Thursday, buoyed by growth in dealmaking and assets at the boutique investment bank.
Growing expectations of interest rate cuts and a flurry of large deals have boosted recovery in dealmaking since the start of the year. Industry executives have, however, expressed guarded optimism.
Lazard's profit gained from a string of high-profile mergers and acquisitions it advised on in the first quarter, such as AbbVie's ABBV.N $10.1 billion acquisition of ImmunoGen and Gilead's GILD.O $4.3 billion deal for CymaBay Therapeutic.
"Lazard's record first-quarter revenue reflects an improving M&A environment and reinforces our outlook for a productive year ahead," CEO Peter Orszag said.
Revenue at its financial advisory segment, which advises on stock sales, and mergers and acquisitions, surged 63% to $454 million.
Lazard's restructuring practice under the segment, dealt with companies including Lumen Technologies LUMN.N, Orpea ORP.PA, Rite Aid and SVB Financial Group in the reporting quarter, according to the bank.
Major U.S. banks including Goldman Sachs GS.N, Bank of America BAC.N, Citigroup C.N, and Morgan Stanley MS.N have also reported bigger gains from investment banking in the first quarter.
Lazard's adjusted revenue jumped 42% to $747 million, compared with analysts' average estimate of $668 million, according to LSEG data.
Excluding one-time items, Lazard earned 66 cents per share, sailing past analysts' average estimate of 51 cents, according to LSEG data.
In February, the company said it conducted firm-wide cost-saving initiatives in 2023 that will continue through the first quarter of this year.
Its asset management revenue rose 4% to $295 million in the first quarter. Lazard's assets under management rose to $250 billion in the quarter from $232 billion a year earlier.
(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Shounak Dasgupta and Shinjini Ganguli)