Send me real-time posts from this site at my email
Zacks

Envestnet (ENV) Beats on Q3 Earnings, Raises Q4 & 2020 View

Envestnet, Inc.’s ENV reported better-than-expected third-quarter 2020 results.

Adjusted earnings (excluding 69 cents from non-recurring items) per share of 72 cents outpaced the Zacks Consensus Estimate as well as the year-ago quarter’s reported figure by 20%. Revenues of $252.6 million surpassed the consensus mark by 2.5% and climbed 7% year over year.

So far this year, shares of Envestnet have gained 20.2% against 1.8% decline of the industry.

Quarterly Numbers in Detail

Adjusted revenues of $252.7 million jumped 6% year over year. Adjusted net revenues grew 4% to $181.5 million.

Asset-based recurring revenues of $137.7 million increased 8.8% year over year, contributing 56.1% to total revenues. Subscription-based recurring revenues of $107.89 million were up 7.3% from the prior-year quarter’s levels, contributing 43.9% to total revenues. Professional services and other non-recurring revenues declined 22.3% year over year to $6.9 million.

Adjusted EBITDA came in at $67.6 million, up 24% year over year.

Envestnet, Inc Price, Consensus and EPS Surprise

Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote

Envestnet ended the third quarter with cash and cash equivalent balance of $362.9 million compared with $92.2 million at the end of the prior quarter. The company generated around $85.1 million of cash from operating activities. CapEx was $4.5 million.

Raised Q4 & 2020 Outlook

For fourth-quarter 2020, Envestnet expects adjusted earnings to be 64 cents per share (previous guidance: 59 cents per share). The raised guidance is higher than the current Zacks Consensus Estimate of 60 cents. Total revenues are estimated between $255.5 million and $257.5 million (previous guidance: $244.5 million and $246 million). This guidance is higher than the current Zacks Consensus Estimate of $246.36 million

Adjusted net revenues are projected in the range of$181-$183.5 million (previous guidance: $174.5-$176.5 million). The company expects adjusted EBITDA in the band of $60-$61 million (previous guidance: $56 million to $57 million).

For 2020, adjusted EPS is now expected in the range of $2.51-$2.53 compared with the prior-guided range of $2.28 and $2.31. The Zacks Consensus Estimate of $2.34 per share lies below the updated guidance.
Total revenues are now anticipated between $990.5 million and $992.5 million compared with the prior guidance of $977-$980MILLION. The Zacks Consensus Estimate of $982.54 million lies below the updated guidance.

Adjusted net revenues are now projected in the range of $714.4-$716.9 million compared with the prior guidance of $704.5-$708.5 million. The company now projects adjusted EBITDA of $238-$239 million compared with the prior guidance of $221-$223 million.

Currently, Envestnet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Performance of Other Business Services Companies

Equifax EFX reported better-than-expected third-quarter 2020 results, with adjusted earnings of $1.87 per share beating the Zacks Consensus Estimate by 16.2% and rising 26.4% on a year-over-year basis. The reported figure exceeded the company’s guidance of $1.30-$1.40.

The Interpublic Group of Companies IPG reported better-than-expected third-quarter 2020 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate by 43.2% and rose 8.2% on a year-over-year basis.

IQVIA Holdings IQV reported solid third-quarter 2020 adjusted earnings per share of $1.63, which beat the consensus mark by 8% and inched up 1.9% on a year-over-year basis. The reported figure was above the company’s guidance of $1.47-$1.55.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>
 


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
 
Equifax, Inc. (EFX): Free Stock Analysis Report
 
Interpublic Group of Companies, Inc. The (IPG): Free Stock Analysis Report
 
Envestnet, Inc (ENV): Free Stock Analysis Report
 
IQVIA Holdings Inc. (IQV): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue