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Envestnet (ENV) Q3 Earnings Beat Estimates, 2022 EPS View Dim
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Envestnet, Inc. (ENV - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues surged year over year.
Adjusted earnings (excluding 58 cents from non-recurring items) per share of 45 cents outpaced the Zacks Consensus Estimate by 7.1% but declined 26.2% year over year. The reported figure lies above the guided range of 40-42 cents.
Adjusted revenues of $306.7 million also beat the consensus mark by 1.3% and climbed 1.2% year over year. The reported figure lies above the guided range of $301.5-$303.5 million.
Asset-based recurring revenues of $177.13 million decreased 3.7% year over year, contributing 58% to total revenues. Subscription-based recurring revenues of $123.7 million were up 8.9% from the prior-year quarter’s level, contributing 40.3% to total revenues. Professional services and other non-recurring revenues increased 6.3% year over year to $5.8 million.
Adjusted EBITDA came in at $53.5 million, down 19% year over year.
Envestnet ended third-quarter 2022 with a cash and cash equivalent balance of $241.3 million compared with $338 million at the end of the prior quarter. Long-term debt was $509 million compared with $508.3 million at the end of the prior quarter.
ENV generated $33.6 million cash from operating activities. CapEx was $3.97 million.
Outlook
For fourth-quarter 2022, Envestnet expects adjusted earnings per share between 42 cents and 43 cents (prior view: 40-42 cents). The current Zacks Consensus Estimate meets the lower end of the guided range of 42 cents.
For the fourth quarter of 2022, total revenues are estimated between $294 million and $296 million (prior view: $301.5 million and $303.5 million). Envestnet expects adjusted EBITDA in the band of $52-$54 million (prior view: $51-$53 million).
For 2022, Envestnet now expects adjusted EPS between $1.82 and $1.84 compared with the prior-guided range of $1.84-$1.89. The updated projection lies below the current Zacks Consensus Estimate of $1.86. Total revenues are now anticipated between $1.241 billion and $1.243 billion compared with the prior-guided range of $1.255-$1.260 billion.
For 2022, ENV now projects adjusted EBITDA of $218-$220 million compared with the prior-guided range of $223-$227 million.
Currently, Envestnet carries a Zacks Rank #5 (Strong Sell).
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a solid margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been stable over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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Envestnet (ENV) Q3 Earnings Beat Estimates, 2022 EPS View Dim
Envestnet, Inc. (ENV - Free Report) reported better-than-expected third-quarter 2022 results, wherein both earnings and revenues surged year over year.
Adjusted earnings (excluding 58 cents from non-recurring items) per share of 45 cents outpaced the Zacks Consensus Estimate by 7.1% but declined 26.2% year over year. The reported figure lies above the guided range of 40-42 cents.
Adjusted revenues of $306.7 million also beat the consensus mark by 1.3% and climbed 1.2% year over year. The reported figure lies above the guided range of $301.5-$303.5 million.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote
Quarterly Numbers in Detail
Asset-based recurring revenues of $177.13 million decreased 3.7% year over year, contributing 58% to total revenues. Subscription-based recurring revenues of $123.7 million were up 8.9% from the prior-year quarter’s level, contributing 40.3% to total revenues. Professional services and other non-recurring revenues increased 6.3% year over year to $5.8 million.
Adjusted EBITDA came in at $53.5 million, down 19% year over year.
Envestnet ended third-quarter 2022 with a cash and cash equivalent balance of $241.3 million compared with $338 million at the end of the prior quarter. Long-term debt was $509 million compared with $508.3 million at the end of the prior quarter.
ENV generated $33.6 million cash from operating activities. CapEx was $3.97 million.
Outlook
For fourth-quarter 2022, Envestnet expects adjusted earnings per share between 42 cents and 43 cents (prior view: 40-42 cents). The current Zacks Consensus Estimate meets the lower end of the guided range of 42 cents.
For the fourth quarter of 2022, total revenues are estimated between $294 million and $296 million (prior view: $301.5 million and $303.5 million). Envestnet expects adjusted EBITDA in the band of $52-$54 million (prior view: $51-$53 million).
For 2022, Envestnet now expects adjusted EPS between $1.82 and $1.84 compared with the prior-guided range of $1.84-$1.89. The updated projection lies below the current Zacks Consensus Estimate of $1.86. Total revenues are now anticipated between $1.241 billion and $1.243 billion compared with the prior-guided range of $1.255-$1.260 billion.
For 2022, ENV now projects adjusted EBITDA of $218-$220 million compared with the prior-guided range of $223-$227 million.
Currently, Envestnet carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a solid margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line has been stable over the past year. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.