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Envestnet (ENV) Stock Declines 1.6% Since Q2 Earnings Beat
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Envestnet, Inc.’s (ENV - Free Report) second-quarter 2020 earnings and revenues surpassed the Zacks Consensus Estimate.
However, the better-than-expected results failed to impress the market, which is evident from the price decline of 1.6% since the company reported its second-quarter 2020 results on Aug 6.
Adjusted earnings per share of 59 cents beat the Zacks Consensus Estimate by 25.5% and increased 28.3% year over year. Revenues of $235.3 million surpassed the consensus mark by 3.5% and climbed 4.8% year over year.
Quarterly Numbers in Detail
Adjusted revenues of $235.4 million jumped 3% year over year. Adjusted net revenues grew 4% to $173.5 million.
Asset-based recurring revenues of $122.2 million increased 2% year over year, representing 52% of total revenues. Subscription-based recurring revenues of $104.9 million were up 14% from the prior-year period, representing 45% of total revenues. Professional services and other non-recurring revenues decreased 33% year over year to $8.1 million.
Adjusted EBITDA came in at $55.8 million, up 29% year over year.
Envestnet ended the second quarter with cash and cash equivalent balance of $92.2 million compared with $68.6 million at the end of the prior quarter. The company generated around $56 million of cash from operating activities. CapEx was $2.2 million.
For third-quarter 2020, Envestnet expects adjusted earningsto be 59 cents per share.The Zacks Consensus Estimate is pegged at57 cents currently. Total revenues are estimated between $244.5 million and $246 million. The current Zacks Consensus Estimate of $246.36 million is higher than the guided range.
Adjusted revenues are anticipated between $244.5 million and $246 million. Adjusted net revenues are projected in the range of$174.5-$176.5 million. The company expects adjusted EBITDA in the band of $56 million to $57 million.
For 2020, adjusted EPS is now expected in the range of $2.28-$2.31 compared with the prior-guided range of $1.92 and $2.02.The Zacks Consensus Estimate of $2.29 million lies within the updated guidance.
Total revenues are now anticipated between $976.3 million and $979.3 million compared with the prior-guided range of $939.5-$945.5 million.The Zacks Consensus Estimate of $982.93 million lies above the updated guidance.
The company now expects adjusted revenues of $977-$980 million compared with the prior guidance of $940-$946 million. Adjusted net revenues are now projected to be in the range$704.5-$708.5 million compared with the prior guidance of $678-$689 million. The company now projects adjusted EBITDA of$221-$223 million compared with the prior guidance of $200-$203 million.
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, whichbeat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis. The reported figure exceeded the guided range of $1.00-$1.09.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share that beat the consensus mark by 17% but were down 58% year over year.
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Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Envestnet (ENV) Stock Declines 1.6% Since Q2 Earnings Beat
Envestnet, Inc.’s (ENV - Free Report) second-quarter 2020 earnings and revenues surpassed the Zacks Consensus Estimate.
However, the better-than-expected results failed to impress the market, which is evident from the price decline of 1.6% since the company reported its second-quarter 2020 results on Aug 6.
Adjusted earnings per share of 59 cents beat the Zacks Consensus Estimate by 25.5% and increased 28.3% year over year. Revenues of $235.3 million surpassed the consensus mark by 3.5% and climbed 4.8% year over year.
Quarterly Numbers in Detail
Adjusted revenues of $235.4 million jumped 3% year over year. Adjusted net revenues grew 4% to $173.5 million.
Asset-based recurring revenues of $122.2 million increased 2% year over year, representing 52% of total revenues. Subscription-based recurring revenues of $104.9 million were up 14% from the prior-year period, representing 45% of total revenues. Professional services and other non-recurring revenues decreased 33% year over year to $8.1 million.
Adjusted EBITDA came in at $55.8 million, up 29% year over year.
Envestnet ended the second quarter with cash and cash equivalent balance of $92.2 million compared with $68.6 million at the end of the prior quarter. The company generated around $56 million of cash from operating activities. CapEx was $2.2 million.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote
Outlook
For third-quarter 2020, Envestnet expects adjusted earningsto be 59 cents per share.The Zacks Consensus Estimate is pegged at57 cents currently. Total revenues are estimated between $244.5 million and $246 million. The current Zacks Consensus Estimate of $246.36 million is higher than the guided range.
Adjusted revenues are anticipated between $244.5 million and $246 million. Adjusted net revenues are projected in the range of$174.5-$176.5 million. The company expects adjusted EBITDA in the band of $56 million to $57 million.
For 2020, adjusted EPS is now expected in the range of $2.28-$2.31 compared with the prior-guided range of $1.92 and $2.02.The Zacks Consensus Estimate of $2.29 million lies within the updated guidance.
Total revenues are now anticipated between $976.3 million and $979.3 million compared with the prior-guided range of $939.5-$945.5 million.The Zacks Consensus Estimate of $982.93 million lies above the updated guidance.
The company now expects adjusted revenues of $977-$980 million compared with the prior guidance of $940-$946 million. Adjusted net revenues are now projected to be in the range$704.5-$708.5 million compared with the prior guidance of $678-$689 million. The company now projects adjusted EBITDA of$221-$223 million compared with the prior guidance of $200-$203 million.
Currently, Envestnet carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Performance of Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2020 adjusted earnings of $1.60 per share, whichbeat the Zacks Consensus Estimate by 22.1% and improved 14.3% on a year-over-year basis. The reported figure exceeded the guided range of 78-88 cents.
IQVIA Holdings (IQV - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but decreased 22.9% on a year-over-year basis. The reported figure exceeded the guided range of $1.00-$1.09.
Robert Half (RHI - Free Report) reported second-quarter 2020 earnings of 41 cents per share that beat the consensus mark by 17% but were down 58% year over year.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>