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Eaton Vance (EV) Misses on Q4 Earnings & Revenue Estimates

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Have you been eager to see how Eaton Vance Corp. (EV - Free Report) performed in fourth-quarter fiscal 2016 (ended Oct 31) in comparison with the market expectations? Let’s quickly scan through the key facts from this Massachusetts-based investment management firm’s earnings release this morning:

Earnings Miss

Eaton Vance came out with adjusted earnings per share of 57 cents, missed the Zacks Consensus Estimate of 60 cents.

Rise expenses were largely responsible for earnings miss.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for Eaton Vance depicted a bearish trend prior to the earnings release. The Zacks Consensus Estimate has inched down over the last 7 days.

Also, Eaton Vance doesn’t have a decent earnings surprise history. Before Q4 earnings, the company has negative earnings beat in two of the trailing four quarters, with an average negative surprise of 2.1%.

EATON VANCE Price and EPS Surprise

 

EATON VANCE Price and EPS Surprise | EATON VANCE Quote

Revenue Came In Lower Than Expected

Eaton Vance posted total revenue of $346.8 million, which lagged the Zacks Consensus Estimate of $351.2 million. However, it compared favorably with the year-ago number of $341.5 million.

Key Statistics/Developments

As of Oct 31, 2016, assets under management (AUM) were $336.4 billion, up 8% year-over-year. Also, total net inflows amounted to $19.3 billion in the reported quarter.

In Oct 2016, Eaton Vance announced the signing of a definitive agreement to acquire Calvert Investment Management, Inc., a subsidiary of Ameritas Holding Company.

During fiscal 2016, Eaton Vance repurchased nearly 7.3 million shares its Non-Voting Common Stock for $253 million.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) for Eaton Vance. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.

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