Back to top

Aggressive Growth

Financial Engines, Inc. (FNGN - Snapshot Report) has delivered two straight quarters with positive earnings surprises, putting together an average beat of 19.6%. This Zacks Rank #1 (Strong Buy) investment advisor offers an attractive opportunity for investors given its expected earnings growth of 38.3% in 2013 and projected long-term earnings growth of 32.5%.

Rank Drivers

Financial Engines will report fourth-quarter results on February 18. The Zacks Consensus Estimate for the quarter is 13 cents on revenues of $52 million. In the year-ago quarter, it reported 12 cents.

On November 6, Financial Engines reported third quarter net income of 10 cents per share, nearly 25% above the Zacks Consensus Estimate and 43% higher than the year-ago earnings.

Revenue jumped 36% year over year to $48.4 million, driven by a 50% surge in professional management revenue.

The company expects to generate 2012 revenues between $185 million and $187 million. The Zacks Consensus Estimate of $186 million is at the midpoint of the company guidance.

Earnings Estimates

The Zacks Consensus Estimate for 2013 is currently pegged at 51 cents, suggesting a year-over-year increase of 38.3%.

Valuation

Shares of Financial Engines are roughly trading at 55.9x on a price-to-earnings basis (P/E), compared with the peer group average of 19.9x. On a price-to-book (P/B) basis, shares are trading at 5.3x, compared with the peer group average of 1.6x.

Financial Engines has a trailing 12-month ROE of 7.6%, lower than the peer group average of 11.1%.

Headquartered in Palo Alto, California, and founded in 1996, Financial Engines Inc. is a leading investment advisor. It provides portfolio management, investment advice and retirement income services to participants in employer-sponsored defined contribution retirement plans, such as 401(k) plans. Its target retirement plan market includes plan participants, plan sponsors and plan providers. Having a market capitalization of $1.35 billion, it competes with Ameriprise Financial Inc. (AMP) among others.


Want More of Our Best Recommendations?

Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.

Learn More>>


Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%