Lazard LAZ delivered a fourth-quarter 2020 positive earnings surprise of 69.4%. Adjusted earnings of $1.66 per share surpassed the Zacks Consensus Estimate of 98 cents. Also, the bottom line came in above the prior-year quarter reported figure of 91 cents.Results reflected revenue growth on elevated financial advisory revenues. Also, higher asset under management (AUM) supported the results. However, rise in expenses was a major drag.Adjusted net income in the fourth quarter was $192 million, up 83% year over year. On a GAAP basis, Lazard’s net income came in at $190 million or $1.64 per share compared with the $77 million or 67 cents recorded in the prior-year quarter.In 2020, the company reported net income (on GAAP basis) of $402 million or $3.54 per share compared with $287 million or $2.44 in 2019. The Zacks Consensus Estimate was pegged at $3.87.Revenues Rise, Costs IncreaseIn the fourth quarter, adjusted operating revenues came in at $848.8 million, up 20% year over year. Also, it topped the Zacks Consensus Estimate of $615.4 million. This rise chiefly resulted from growth in asset-management and financial advisory revenues, partly offset by lower corporate revenues.Lazard reported $2.52 billion in 2020, down 1% from previous year. The top line, however, lagged the consensus estimate of $2.72 billion.Adjusted operating expenses were $613.8 million in the quarter, up 14.1% year over year. Higher compensation and benefits expenses, partly offset by lower non-compensation costs, resulted in this upside.Adjusted compensation and benefits expense flared up around 22%, on a year-over-year basis, to $497.3 million. Adjusted non-compensation expense in the quarter was $116.6 million, down 10% year over year.The ratio of compensation expense to operating revenues was 58.6%, up from the year-earlier quarter’s 57.5%. The ratio of non-compensation expense to operating revenues was 13.7% compared with the year-ago quarter’s 18.3%.Segment PerformanceFinancial Advisory: The segment’s total revenues came in at a record $508.6 million, up 29% from the year-earlier quarter, reflecting higher M&A and restructuring activities.Asset Management: The segment’s total revenues were $336.2 million, up 12% from the prior-year quarter. Higher AUM resulted in this upside.Corporate: The segment generated revenues of $4 million compared with the $12.3 million recorded in the year-ago period.AUM GrowthAs of Dec 31, 2020, AUM was recorded at $258.6 billion, up 4.2% from the prior-year quarter. The quarter witnessed a market and foreign-exchange appreciation of $13.2 billion, partially offset by net outflows of $286 million.Average AUM came in at $245.6 billion, down 3.1% year over year.Steady Balance Sheet PositionLazard’s cash and cash equivalents totaled $1.4 billion as of Dec 31, 2020, compared with $1.2 billion recorded as of Dec 31, 2019. The company’s stockholders’ equity was $999.4 million compared with $681.6 million as of Dec 31, 2019.Our ViewpointResults reflect Lazard’s impressive performance during the December quarter. Though diverse footprint, revenue growth and rising AUM position the company well for the long haul, macro headwinds, elevated expenses and overall outflows weigh on financials.Lazard Ltd Price, Consensus and EPS Surprise Lazard Ltd price-consensus-eps-surprise-chart | Lazard Ltd QuoteCurrently, Lazard sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Performance of Investment ManagersAmeriprise Financial’s AMP fourth-quarter 2020 adjusted operating earnings per share of $4.53 surpassed the Zacks Consensus Estimate of $4.44. Moreover, the bottom line was 7.9% higher than the year-ago quarter.Cohen & Steers’ CNS fourth-quarter 2020 adjusted earnings of 76 cents per share surpassed the Zacks Consensus Estimate of 67 cents. Moreover, the bottom line was 2.7% higher than the year-ago reported figure.SEI Investments Co.’s SEIC fourth-quarter 2020 earnings of 86 cents per share surpassed the Zacks Consensus Estimate of 80 cents. Moreover, the figure reflects a rise of 2.4% from the prior-year quarter.Biggest Tech Breakthrough in a GenerationBe among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.See 8 breakthrough stocks now>>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lazard Ltd (LAZ): Free Stock Analysis Report Ameriprise Financial, Inc. (AMP): Free Stock Analysis Report Cohen & Steers Inc (CNS): Free Stock Analysis Report SEI Investments Company (SEIC): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research