Envestnet, Inc.(ENV - Free Report) stock has lost 12.7% since its first-quarter 2022 earnings release on May 5. The downfall can be attributed to lower-than-expected revenue performance.
Adjusted earnings per share of 47 cents outpaced the Zacks Consensus Estimate by 4.4% but declined 27% year over year. The reported figure lies above the guided range of 44 to 45 cents.
Revenues of $321.4 million missed the consensus mark by 0.4% but climbed 17% year over year. The reported figure lies above the guided range of $322-$325 million.
Quarterly Numbers in Detail
Adjusted revenues of $321.4 million jumped 17% year over year.
Asset-based recurring revenues of $202.72 million increased 27% year over year, contributing 63% to total revenues. Subscription-based recurring revenues of $114.73 million were up 4% from the prior-year quarter’s level, contributing 36% to total revenues. Professional services and other non-recurring revenues decreased 34% year over year to $3.91 million.
Adjusted EBITDA came in at $55.7 million, down 18% year over year.
Envestnet ended first-quarter 2022 with cash and cash equivalent balance of $359.61 million compared with $429.28 million at the end of the prior quarter. Long-term debt was $850.09 million compared with $848.86 million at the end of the prior quarter.
The company generated around $3.26 million of cash from operating activities. CapEx was $3.89 million.
Q2 & 2022 Outlook
For second-quarter 2022, Envestnet expects adjusted earnings per share between 45 and 46 cents. The Zacks Consensus Estimate of 53 cents lies above the guidance.
Total revenues are estimated between $324 million and $326 million. The Zacks Consensus Estimate of $330.55 million lies above the guidance.
The company expects adjusted EBITDA in the band of $55.5-$56.5 million.
For full-year 2022, Envestnet now expects adjusted EPS between $2.17 and $2.23 compared with the prior-guided range of $2.30-$2.40. The Zacks Consensus Estimate of $2.27 lies above the updated guidance.
Total revenues are now anticipated between $1.330 billion and $1.340 billion compared with the prior-guided range of $1.36-$1.385 billion. The Zacks Consensus Estimate of $1.35 billion lies above the updated guidance.
The company now projects adjusted EBITDA of $255-$260 million compared with the prior-guided range of $270-$280 million.
Currently, Envestnet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Omnicom Group (OMC - Free Report) reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Omnicom’s earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by strong margin performance.
Omnicom’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2022 results.
Equifax’s adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. The reported figure exceeded the guided range of $2.08-$2.18.
Equifax’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $1.32-$1.34 billion.
Waste Management (WM - Free Report) reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Waste Management’s adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year.
Waste Management’s total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.
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Envestnet, Inc.(ENV - Free Report) stock has lost 12.7% since its first-quarter 2022 earnings release on May 5. The downfall can be attributed to lower-than-expected revenue performance.
Adjusted earnings per share of 47 cents outpaced the Zacks Consensus Estimate by 4.4% but declined 27% year over year. The reported figure lies above the guided range of 44 to 45 cents.
Revenues of $321.4 million missed the consensus mark by 0.4% but climbed 17% year over year. The reported figure lies above the guided range of $322-$325 million.
Quarterly Numbers in Detail
Adjusted revenues of $321.4 million jumped 17% year over year.
Asset-based recurring revenues of $202.72 million increased 27% year over year, contributing 63% to total revenues. Subscription-based recurring revenues of $114.73 million were up 4% from the prior-year quarter’s level, contributing 36% to total revenues. Professional services and other non-recurring revenues decreased 34% year over year to $3.91 million.
Adjusted EBITDA came in at $55.7 million, down 18% year over year.
Envestnet ended first-quarter 2022 with cash and cash equivalent balance of $359.61 million compared with $429.28 million at the end of the prior quarter. Long-term debt was $850.09 million compared with $848.86 million at the end of the prior quarter.
The company generated around $3.26 million of cash from operating activities. CapEx was $3.89 million.
Q2 & 2022 Outlook
For second-quarter 2022, Envestnet expects adjusted earnings per share between 45 and 46 cents. The Zacks Consensus Estimate of 53 cents lies above the guidance.
Total revenues are estimated between $324 million and $326 million. The Zacks Consensus Estimate of $330.55 million lies above the guidance.
The company expects adjusted EBITDA in the band of $55.5-$56.5 million.
For full-year 2022, Envestnet now expects adjusted EPS between $2.17 and $2.23 compared with the prior-guided range of $2.30-$2.40. The Zacks Consensus Estimate of $2.27 lies above the updated guidance.
Total revenues are now anticipated between $1.330 billion and $1.340 billion compared with the prior-guided range of $1.36-$1.385 billion. The Zacks Consensus Estimate of $1.35 billion lies above the updated guidance.
The company now projects adjusted EBITDA of $255-$260 million compared with the prior-guided range of $270-$280 million.
Currently, Envestnet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Omnicom Group (OMC - Free Report) reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Omnicom’s earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by strong margin performance.
Omnicom’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2022 results.
Equifax’s adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. The reported figure exceeded the guided range of $2.08-$2.18.
Equifax’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $1.32-$1.34 billion.
Waste Management (WM - Free Report) reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Waste Management’s adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year.
Waste Management’s total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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