We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Envestnet (ENV) Down 7% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Envestnet (ENV - Free Report) . Shares have lost about 7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Envestnet due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Envestnet Surpasses Q4 Earnings and Revenue Estimates
Adjusted earnings per share of 69 cents outpaced the Zacks Consensus Estimate by 6.2% and remained flat year over year. Revenues of $263.8 million surpassed the consensus mark by 2.2% and climbed 9.9% year over year.
Quarterly Numbers in Detail
Adjusted revenues of $263.9 million jumped 9% year over year. Adjusted net revenues grew 4% to $181.5 million.
Asset-based recurring revenues of $146.1 million increased 14% year over year, contributing 55% to total revenues. Subscription-based recurring revenues of $109.1 million were up 6% from the prior-year quarter’s levels, contributing 41% to total revenues. Professional services and other non-recurring revenues increased 3% year over year to $6.9 million.
Adjusted EBITDA came in at $64.9 million, up 5.6% year over year.
Envestnet ended the fourth quarter with cash and cash equivalent balance of $384.6 million compared with $362.9 million at the end of the prior quarter. The company generated around $38.2 million of cash from operating activities. CapEx was $3.3 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Envestnet has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Envestnet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Envestnet (ENV) Down 7% Since Last Earnings Report?
It has been about a month since the last earnings report for Envestnet (ENV - Free Report) . Shares have lost about 7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Envestnet due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Envestnet Surpasses Q4 Earnings and Revenue Estimates
Envestnet reported better-than-expected fourth-quarter 2020 results.
Adjusted earnings per share of 69 cents outpaced the Zacks Consensus Estimate by 6.2% and remained flat year over year. Revenues of $263.8 million surpassed the consensus mark by 2.2% and climbed 9.9% year over year.
Quarterly Numbers in Detail
Adjusted revenues of $263.9 million jumped 9% year over year. Adjusted net revenues grew 4% to $181.5 million.
Asset-based recurring revenues of $146.1 million increased 14% year over year, contributing 55% to total revenues. Subscription-based recurring revenues of $109.1 million were up 6% from the prior-year quarter’s levels, contributing 41% to total revenues. Professional services and other non-recurring revenues increased 3% year over year to $6.9 million.
Adjusted EBITDA came in at $64.9 million, up 5.6% year over year.
Envestnet ended the fourth quarter with cash and cash equivalent balance of $384.6 million compared with $362.9 million at the end of the prior quarter. The company generated around $38.2 million of cash from operating activities. CapEx was $3.3 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
At this time, Envestnet has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Envestnet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.