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Envestnet's (ENV) Stock Rises 3.7% Since Q2 Earnings Beat
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Envestnet, Inc.(ENV - Free Report) stock has climbed 3.7% since its second-quarter 2021 earnings release on Aug 5. The price surge can be attributed to better-than-expected earnings and revenue performance, and a raised 2021 guidance.
Adjusted earnings per share of 67 cents outpaced the Zacks Consensus Estimate by 24.1% and improved 14% year over year. The reported figure lies above the guidance of 53-55 cents.
Revenues of $288.7 million surpassed the consensus mark by 2% and climbed 23% year over year. The reported figure lies above the guided range of $281-$284 million.
So far this year, shares of Envestnet have declined 6.2% compared with 6.9% loss 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 $288.8 million jumped 23% year over year.
Asset-based recurring revenues of $170.07 million increased 39% year over year, contributing 59% of total revenues. Subscription-based recurring revenues of $112.5 million were up 7% from the prior-year quarter’s level, contributing 39% of total revenues. Professional services and other non-recurring revenues decreased 24% year over year to $6.16 million.
Adjusted EBITDA came in at $71.1 million, up 27% year over year.
Envestnet ended second-quarter 2021 with cash and cash equivalent balance of $369.52 million compared with $371.98 million at the end of the prior quarter. Long-term debt was $846.41 million compared with $845.19 million at the end of the prior quarter.
The company generated around $69.35 million of cash from operating activities. CapEx was $4.29 million.
For third-quarter 2021, Envestnet expects adjusted earnings to be 58 cents per share. The Zacks Consensus Estimate of 48 cents lies below the guidance.
Total revenues are estimated between $298 million and $300.5 million. The Zacks Consensus Estimate of $294.29 million lies below the guidance.
The company expects adjusted EBITDA in the band of $61-$63 million.
For full-year 2021, Envestnet has raised its guidance. Adjusted EPS is now expected in the range of $2.30-$2.35 compared with the prior guidance of $2.03-$2.10. The Zacks Consensus Estimate of $2.14 lies below the updated guidance.
Total revenues are now anticipated between $1.169 billion and $1.174 billion compared with the prior guidance of $1.138-$1.148 billion. The Zacks Consensus Estimate of $1.15 billion lies below the updated guidance.
The company now projects adjusted EBITDA of $253-$257 million compared with the prior guidance of $230-$236 million.
Equifax’s (EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100% year over year. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.
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Envestnet's (ENV) Stock Rises 3.7% Since Q2 Earnings Beat
Envestnet, Inc. (ENV - Free Report) stock has climbed 3.7% since its second-quarter 2021 earnings release on Aug 5. The price surge can be attributed to better-than-expected earnings and revenue performance, and a raised 2021 guidance.
Adjusted earnings per share of 67 cents outpaced the Zacks Consensus Estimate by 24.1% and improved 14% year over year. The reported figure lies above the guidance of 53-55 cents.
Revenues of $288.7 million surpassed the consensus mark by 2% and climbed 23% year over year. The reported figure lies above the guided range of $281-$284 million.
So far this year, shares of Envestnet have declined 6.2% compared with 6.9% loss 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 $288.8 million jumped 23% year over year.
Asset-based recurring revenues of $170.07 million increased 39% year over year, contributing 59% of total revenues. Subscription-based recurring revenues of $112.5 million were up 7% from the prior-year quarter’s level, contributing 39% of total revenues. Professional services and other non-recurring revenues decreased 24% year over year to $6.16 million.
Adjusted EBITDA came in at $71.1 million, up 27% year over year.
Envestnet ended second-quarter 2021 with cash and cash equivalent balance of $369.52 million compared with $371.98 million at the end of the prior quarter. Long-term debt was $846.41 million compared with $845.19 million at the end of the prior quarter.
The company generated around $69.35 million of cash from operating activities. CapEx was $4.29 million.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote
Q3 & 2021 Outlook
For third-quarter 2021, Envestnet expects adjusted earnings to be 58 cents per share. The Zacks Consensus Estimate of 48 cents lies below the guidance.
Total revenues are estimated between $298 million and $300.5 million. The Zacks Consensus Estimate of $294.29 million lies below the guidance.
The company expects adjusted EBITDA in the band of $61-$63 million.
For full-year 2021, Envestnet has raised its guidance. Adjusted EPS is now expected in the range of $2.30-$2.35 compared with the prior guidance of $2.03-$2.10. The Zacks Consensus Estimate of $2.14 lies below the updated guidance.
Total revenues are now anticipated between $1.169 billion and $1.174 billion compared with the prior guidance of $1.138-$1.148 billion. The Zacks Consensus Estimate of $1.15 billion lies below the updated guidance.
The company now projects adjusted EBITDA of $253-$257 million compared with the prior guidance of $230-$236 million.
Currently, Envestnet carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and improved 26% year over year on a reported basis and 23% on a local-currency basis.
Robert Half’s (RHI - Free Report) second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and increased 42.3% year over year on a reported basis and 40% on an adjusted basis.
ManpowerGroup’s (MAN - Free Report) second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100% year over year. Revenues of $5.28 billion beat the consensus mark by 2% and inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.