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Envestnet's (ENV) Stock Rises 2.5% Since Q3 Earnings Beat
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Envestnet, Inc. (ENV - Free Report) stock has climbed 2.5% since its third-quarter 2021 earnings release on Nov 8. The price surge can be attributed to better-than-expected earnings and revenue performance, and a raised 2021 guidance.
Adjusted earnings per share of 61 cents outpaced the Zacks Consensus Estimate by 3.4% but declined 15.3% year over year. The reported figure lies above the guidance of 58 cents.
Revenues of $303.1 million surpassed the consensus mark by 0.7% and climbed 20% year over year. The reported figure lies above the guided range of $298-$300.5 million.
So far this year, shares of Envestnet have gained 3.3% compared with 20% rise of the industry it belongs to.
Image Source: Zacks Investment Research
Let’s check out the numbers in detail.
Quarterly Numbers in Detail
Adjusted revenues of $303.1 million jumped 20% year over year.
Asset-based recurring revenues of $184 million increased 34% year over year, contributing 61% of total revenues. Subscription-based recurring revenues of $113.57 million were up 5% from the prior-year quarter’s level, contributing 37% of total revenues. Professional services and other non-recurring revenues decreased 21% year over year to $5.47 million.
Adjusted EBITDA came in at $66.2 million, down 2% year over year.
Envestnet ended third-quarter 2021 with cash and cash equivalent balance of $393.79 million compared with $369.52 million at the end of the prior quarter. Long-term debt was $847.63 million compared with $846.41 million at the end of the prior quarter.
The company generated around $50.8 million of cash from operating activities. CapEx was $4.42 million.
Q4 & 2021 Outlook
For fourth-quarter 2021, Envestnet expects adjusted earnings to be 49 cents per share. The Zacks Consensus Estimate of 50 cents lies above the guidance.
Total revenues are estimated between $310 million and $312 million. The Zacks Consensus Estimate of $309.03 million lies below the guidance.
The company expects adjusted EBITDA in the band of $54-$55 million.
For full-year 2021, Envestnet has raised its guidance. Adjusted EPS is now expected to be $2.41 compared with the prior guidance of $2.30-$2.35. The Zacks Consensus Estimate of $2.40 lies below the updated guidance.
Total revenues are now anticipated between $1.177 billion and $1.179 billion compared with the prior guidance of $1.169-$1.174 billion. The Zacks Consensus Estimate of $1.17 billion lies below the updated guidance.
The company now projects adjusted EBITDA of $259.5-$260.5 million compared with the prior guidance of $253-$257 million.
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year on a reported and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported and 21.1% on a constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
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Envestnet's (ENV) Stock Rises 2.5% Since Q3 Earnings Beat
Envestnet, Inc. (ENV - Free Report) stock has climbed 2.5% since its third-quarter 2021 earnings release on Nov 8. The price surge can be attributed to better-than-expected earnings and revenue performance, and a raised 2021 guidance.
Adjusted earnings per share of 61 cents outpaced the Zacks Consensus Estimate by 3.4% but declined 15.3% year over year. The reported figure lies above the guidance of 58 cents.
Revenues of $303.1 million surpassed the consensus mark by 0.7% and climbed 20% year over year. The reported figure lies above the guided range of $298-$300.5 million.
So far this year, shares of Envestnet have gained 3.3% compared with 20% rise of the industry it belongs to.
Let’s check out the numbers in detail.
Quarterly Numbers in Detail
Adjusted revenues of $303.1 million jumped 20% year over year.
Asset-based recurring revenues of $184 million increased 34% year over year, contributing 61% of total revenues. Subscription-based recurring revenues of $113.57 million were up 5% from the prior-year quarter’s level, contributing 37% of total revenues. Professional services and other non-recurring revenues decreased 21% year over year to $5.47 million.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envest net, Inc Quote
Adjusted EBITDA came in at $66.2 million, down 2% year over year.
Envestnet ended third-quarter 2021 with cash and cash equivalent balance of $393.79 million compared with $369.52 million at the end of the prior quarter. Long-term debt was $847.63 million compared with $846.41 million at the end of the prior quarter.
The company generated around $50.8 million of cash from operating activities. CapEx was $4.42 million.
Q4 & 2021 Outlook
For fourth-quarter 2021, Envestnet expects adjusted earnings to be 49 cents per share. The Zacks Consensus Estimate of 50 cents lies above the guidance.
Total revenues are estimated between $310 million and $312 million. The Zacks Consensus Estimate of $309.03 million lies below the guidance.
The company expects adjusted EBITDA in the band of $54-$55 million.
For full-year 2021, Envestnet has raised its guidance. Adjusted EPS is now expected to be $2.41 compared with the prior guidance of $2.30-$2.35. The Zacks Consensus Estimate of $2.40 lies below the updated guidance.
Total revenues are now anticipated between $1.177 billion and $1.179 billion compared with the prior guidance of $1.169-$1.174 billion. The Zacks Consensus Estimate of $1.17 billion lies below the updated guidance.
The company now projects adjusted EBITDA of $259.5-$260.5 million compared with the prior guidance of $253-$257 million.
Currently, Envestnet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Business Services Companies
Equifax’s (EFX - Free Report) third-quarter 2021 adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year on a reported and 14% on a local-currency basis.
IQVIA’s (IQV - Free Report) third-quarter 2021 adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported and 21.1% on a constant-currency basis.
Omnicom’s (OMC - Free Report) third-quarter 2021 adjusted earnings of $1.65 per share beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.