Back to top

Image: Bigstock

Eaton Vance (EV) Lags on Q1 Earnings, Revenue Improves

Read MoreHide Full Article

Have you been eager to see how Eaton Vance Corp. (EV - Free Report) performed in first-quarter fiscal 2017 (ended Jan 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 53 cents, lagged the Zacks Consensus Estimate of 58 cents.

Higher 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 neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.

Notably, Eaton Vance doesn’t have a decent earnings surprise history. Before Q1 earnings, the company has an average negative earnings surprise of 1.2%.

Eaton Vance Corporation Price and EPS Surprise

 

Eaton Vance Corporation Price and EPS Surprise | Eaton Vance Corporation Quote

Revenue Came In Higher Than Expected

Eaton Vance posted total revenue of $355.0 million, which marginally surpassed the Zacks Consensus Estimate of $354.4 million. Also, it compared favorably with the year-ago number of $331.6 million.

Key Statistics/Developments

As of Jan 31, 2017, assets under management (AUM) were $363.7 billion, up 20% year-over-year. Also, total net inflows amounted to $21.8 billion in the reported quarter.

In Dec 2016, Eaton Vance announced the closure of the deal to acquire Calvert Investment Management, Inc., a subsidiary of Ameritas Holding Company.

During fiscal first quarter, Eaton Vance repurchased nearly 1.3 million shares its Non-Voting Common Stock for $53.6 million.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) 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.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks’ Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Mast Global Battery Recycling & Production ETF (EV) - free report >>