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Envestnet (ENV) Beats on Q4 Earnings & Revenues, Gains 8.3%
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Envestnet, Inc. (ENV - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate.
The stock has gained 8.3% since the earnings release on Feb 22, 2024, in response to the better-than-expected results.
ENV’s earnings per share (EPS), excluding $4 from non-recurring items, were 65 cents, surpassing the consensus estimate by 22.6%. The bottom line increased 44.4% from the year-ago quarter.
Total revenues of $317.6 million beat the consensus estimate by 1.7%. The top line improved 8.5% on a year-over-year basis.
The company’s shares have gained 43.2% in the past three months, outperforming the 13.3% rally of the industry it belongs to.
Asset-based recurring revenues of $188.6 million, which represented 59% of the top line, increased 13% on a year-over-year basis.
Professional services and other non-recurring revenues increased more than 100% from a year-ago quarter to $11.2 million.
Subscription-based recurring revenues of $117.8 million decreased 3% from the prior year and contributed 37% to the top line.
Profitability Performance
Adjusted EBITDA increased 44% from the year-ago figure to $75.5 million. The adjusted EBITDA margin increased 590 basis points year over year to 23.8% in the quarter under discussion.
Balance Sheet & Cash Flow
ENV’s cash and cash equivalents were $91.4 million compared with $43.2 million a quarter ago. Debt (net of current portion) as of the end of the fourth quarter was $876.7 million, up from $875.4 million in the prior quarter. ENV generated $75.6 million in cash from operating activities. CapEx was $7.2 million.
Guidance
For first-quarter 2024, the company expects revenues of $320-$326 million. The mid-point of the company’s guided range ($323 million) is above the Zacks Consensus Estimate of $321.5 million.
Adjusted EPS is anticipated to be 52-57 cents. The mid-point of the guided range (54.5 cents) is lower than the Zacks Consensus Estimate of 57 cents. Adjusted EBITDA is anticipated to be $64-$69 million.
Clean Harbors, Inc. (CLH - Free Report) reported mixed fourth-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the mark.
CLH’s EPS of $1.82 beat the Zacks Consensus Estimate by 8.3% and grew 26.4% from the year-ago quarter. Total revenues of $1.3 billion missed the consensus estimate by 1.1% but grew 4.7% on a year-over-year basis.
FTI Consulting, Inc. (FCN - Free Report) reported an impressive fourth-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
FCN’s EPS of $2.28 beat the Zacks Consensus Estimate by 45.2% and increased 50% on a year-over-year basis. Total revenues of $924.7 million surpassed the consensus mark by 11.5% and increased 19.4% from the year-ago quarter.
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Envestnet (ENV) Beats on Q4 Earnings & Revenues, Gains 8.3%
Envestnet, Inc. (ENV - Free Report) reported impressive fourth-quarter 2023 results, with earnings and revenues beating the Zacks Consensus Estimate.
The stock has gained 8.3% since the earnings release on Feb 22, 2024, in response to the better-than-expected results.
ENV’s earnings per share (EPS), excluding $4 from non-recurring items, were 65 cents, surpassing the consensus estimate by 22.6%. The bottom line increased 44.4% from the year-ago quarter.
Total revenues of $317.6 million beat the consensus estimate by 1.7%. The top line improved 8.5% on a year-over-year basis.
The company’s shares have gained 43.2% in the past three months, outperforming the 13.3% rally of the industry it belongs to.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote
Segmental Revenues
Asset-based recurring revenues of $188.6 million, which represented 59% of the top line, increased 13% on a year-over-year basis.
Professional services and other non-recurring revenues increased more than 100% from a year-ago quarter to $11.2 million.
Subscription-based recurring revenues of $117.8 million decreased 3% from the prior year and contributed 37% to the top line.
Profitability Performance
Adjusted EBITDA increased 44% from the year-ago figure to $75.5 million. The adjusted EBITDA margin increased 590 basis points year over year to 23.8% in the quarter under discussion.
Balance Sheet & Cash Flow
ENV’s cash and cash equivalents were $91.4 million compared with $43.2 million a quarter ago. Debt (net of current portion) as of the end of the fourth quarter was $876.7 million, up from $875.4 million in the prior quarter. ENV generated $75.6 million in cash from operating activities. CapEx was $7.2 million.
Guidance
For first-quarter 2024, the company expects revenues of $320-$326 million. The mid-point of the company’s guided range ($323 million) is above the Zacks Consensus Estimate of $321.5 million.
Adjusted EPS is anticipated to be 52-57 cents. The mid-point of the guided range (54.5 cents) is lower than the Zacks Consensus Estimate of 57 cents. Adjusted EBITDA is anticipated to be $64-$69 million.
Envestnet currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Earnings Snapshots of Some Business Service Firms
Clean Harbors, Inc. (CLH - Free Report) reported mixed fourth-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate, while revenues missed the mark.
CLH’s EPS of $1.82 beat the Zacks Consensus Estimate by 8.3% and grew 26.4% from the year-ago quarter. Total revenues of $1.3 billion missed the consensus estimate by 1.1% but grew 4.7% on a year-over-year basis.
FTI Consulting, Inc. (FCN - Free Report) reported an impressive fourth-quarter 2023 results, with earnings and revenues surpassing the Zacks Consensus Estimate.
FCN’s EPS of $2.28 beat the Zacks Consensus Estimate by 45.2% and increased 50% on a year-over-year basis. Total revenues of $924.7 million surpassed the consensus mark by 11.5% and increased 19.4% from the year-ago quarter.