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Envestnet (ENV) Up 13.5% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Envestnet (ENV - Free Report) . Shares have added about 13.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Envestnet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Envestnet Beats Q3 Earnings Estimate
Envestnet’s third-quarter 2019 adjusted EPS came in at 60 cents beating the Zacks Consensus Estimate by 3.4% and increasing 13% year over year. Revenues of $236.1 million surpassed the consensus mark by 0.9% and increased 16% year over year.
The company’s raised revenue and earnings guidance for 2019 lifted investors optimism on the stock. Envestnet currently expects full-year revenues between $896.5 million and $898 million, compared with the previous expectation of $888.5-$894.5 million.
More Details on Quarterly Numbers
Adjusted revenues of $239.3 million increased 18% year over year. Adjusted net revenues grew 20% to $175 million.
Asset-based recurring revenues of $ 126.6 million increased 6% year over year, representing 54% of total revenues. Subscription-based recurring revenues of $100.6 million were up 32% from the prior-year period, representing 43% of total revenues. Professional services and other non-recurring revenues increased 13% year over year to $8.9 million. PortfolioCenter and PIEtech acquisitions contributed revenues of $2.4 million and $11.5 million, respectively.
Adjusted EBITDA came in at $54.5 million, up 28% year over year. Adjusted net income of $32.4 million increased 28%.
Envestnet ended the quarter with cash and cash equivalent balance of $71.6 million, compared with $77.7 million at the end of the prior quarter. Total debt was $618 million. The company generated around $59.5 million of cash from operating activities and CapEx was $7.3 million.
2019 Outlook
Adjusted revenues are anticipated between $905.5 and $907 million, compared with the previous guidance of $897-$903 million. Adjusted net revenues are projected in the range of $661.5 million to $663.5 million, compared with $656 million to $663 million expected earlier. Adjusted EPS is expected to be $2.14, compared with the prior guidance of $2.10 to $2.12. The company anticipates adjusted EBITDA in the range of $192 million to $193 million, compared with the prior expectation of $191.5 million to $193 million.
Q4 Outlook
Envestnet expects revenues between $236.5 million and $238 million. Adjusted revenues are anticipated between $238.5 million and 240 million. Adjusted net revenues are expected in the range of $173 million to $175 million. The company projects adjusted EBITDA in the range of $60 million to $61 million. Adjusted EPS is anticipated to be 68 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 7.39% due to these changes.
VGM Scores
Currently, Envestnet has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Envestnet has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Envestnet (ENV) Up 13.5% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Envestnet (ENV - Free Report) . Shares have added about 13.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Envestnet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Envestnet Beats Q3 Earnings Estimate
Envestnet’s third-quarter 2019 adjusted EPS came in at 60 cents beating the Zacks Consensus Estimate by 3.4% and increasing 13% year over year. Revenues of $236.1 million surpassed the consensus mark by 0.9% and increased 16% year over year.
The company’s raised revenue and earnings guidance for 2019 lifted investors optimism on the stock. Envestnet currently expects full-year revenues between $896.5 million and $898 million, compared with the previous expectation of $888.5-$894.5 million.
More Details on Quarterly Numbers
Adjusted revenues of $239.3 million increased 18% year over year. Adjusted net revenues grew 20% to $175 million.
Asset-based recurring revenues of $ 126.6 million increased 6% year over year, representing 54% of total revenues. Subscription-based recurring revenues of $100.6 million were up 32% from the prior-year period, representing 43% of total revenues. Professional services and other non-recurring revenues increased 13% year over year to $8.9 million. PortfolioCenter and PIEtech acquisitions contributed revenues of $2.4 million and $11.5 million, respectively.
Adjusted EBITDA came in at $54.5 million, up 28% year over year. Adjusted net income of $32.4 million increased 28%.
Envestnet ended the quarter with cash and cash equivalent balance of $71.6 million, compared with $77.7 million at the end of the prior quarter. Total debt was $618 million. The company generated around $59.5 million of cash from operating activities and CapEx was $7.3 million.
2019 Outlook
Adjusted revenues are anticipated between $905.5 and $907 million, compared with the previous guidance of $897-$903 million. Adjusted net revenues are projected in the range of $661.5 million to $663.5 million, compared with $656 million to $663 million expected earlier. Adjusted EPS is expected to be $2.14, compared with the prior guidance of $2.10 to $2.12. The company anticipates adjusted EBITDA in the range of $192 million to $193 million, compared with the prior expectation of $191.5 million to $193 million.
Q4 Outlook
Envestnet expects revenues between $236.5 million and $238 million. Adjusted revenues are anticipated between $238.5 million and 240 million. Adjusted net revenues are expected in the range of $173 million to $175 million. The company projects adjusted EBITDA in the range of $60 million to $61 million. Adjusted EPS is anticipated to be 68 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 7.39% due to these changes.
VGM Scores
Currently, Envestnet has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Envestnet has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.