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Envestnet (ENV) Stock Down 12.4% Despite Q4 Earnings Beat
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Envestnet, Inc. (ENV - Free Report) reported better-than-expected fourth-quarter 2020 results. Despite such encouraging results, shares of the company have lost 12.4% since its earnings release on Feb 25.
Adjusted earnings per share of 69 cents outpaced the Zacks Consensus Estimate by 6.2% and remained flat year over year. Revenues of $263.8 million surpassed the consensus mark by 2.2% and climbed 9.9% year over year.
Over the past year, shares of Envestnet have declined 8.3% against 8.2% rise of the industry it belongs to.
Let’s check out the numbers in detail.
Quarterly Numbers in Detail
Adjusted revenues of $263.9 million jumped 9% year over year.
Asset-based recurring revenues of $146.1 million increased 14% year over year, contributing 55% to total revenues. Subscription-based recurring revenues of $109.1 million were up 6% from the prior-year quarter’s levels, contributing 41% to total revenues. Professional services and other non-recurring revenues increased 3% year over year to $6.9 million.
Adjusted EBITDA came in at $64.9 million, up 5.6% year over year.
Envestnet ended the fourth quarter with cash and cash equivalent balance of $384.6 million compared with $362.9 million at the end of the prior quarter. The company generated around $38.2 million of cash from operating activities. CapEx was $3.3 million.
Q1 & 2021 Outlook
For first-quarter 2021, Envestnet expects adjusted earnings to be 61 cents per share. The Zacks Consensus Estimate of 59 cents lies below the guidance.
Total revenues are estimated between $270 million and $273 million. The company expects adjusted EBITDA in the band of $63-$65 million.
For 2021, adjusted EPS is expected in the range of $1.95-$2.08. The Zacks Consensus Estimate of $2.41 lies above the guidance.
Total revenues are anticipated between $1.11 billion and $1.12 billion. The company projects adjusted EBITDA of $225-$235 million.
Currently, Envestnet carries a Zacks Rank #5 (Strong Sell).
Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Envestnet (ENV) Stock Down 12.4% Despite Q4 Earnings Beat
Envestnet, Inc. (ENV - Free Report) reported better-than-expected fourth-quarter 2020 results. Despite such encouraging results, shares of the company have lost 12.4% since its earnings release on Feb 25.
Adjusted earnings per share of 69 cents outpaced the Zacks Consensus Estimate by 6.2% and remained flat year over year. Revenues of $263.8 million surpassed the consensus mark by 2.2% and climbed 9.9% year over year.
Over the past year, shares of Envestnet have declined 8.3% against 8.2% rise of the industry it belongs to.
Let’s check out the numbers in detail.
Quarterly Numbers in Detail
Adjusted revenues of $263.9 million jumped 9% year over year.
Asset-based recurring revenues of $146.1 million increased 14% year over year, contributing 55% to total revenues. Subscription-based recurring revenues of $109.1 million were up 6% from the prior-year quarter’s levels, contributing 41% to total revenues. Professional services and other non-recurring revenues increased 3% year over year to $6.9 million.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote
Adjusted EBITDA came in at $64.9 million, up 5.6% year over year.
Envestnet ended the fourth quarter with cash and cash equivalent balance of $384.6 million compared with $362.9 million at the end of the prior quarter. The company generated around $38.2 million of cash from operating activities. CapEx was $3.3 million.
Q1 & 2021 Outlook
For first-quarter 2021, Envestnet expects adjusted earnings to be 61 cents per share. The Zacks Consensus Estimate of 59 cents lies below the guidance.
Total revenues are estimated between $270 million and $273 million. The company expects adjusted EBITDA in the band of $63-$65 million.
For 2021, adjusted EPS is expected in the range of $1.95-$2.08. The Zacks Consensus Estimate of $2.41 lies above the guidance.
Total revenues are anticipated between $1.11 billion and $1.12 billion. The company projects adjusted EBITDA of $225-$235 million.
Currently, Envestnet carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Rollins’ (ROL - Free Report) fourth-quarter 2020 adjusted earnings of 13 cents per share came ahead of the consensus estimate as well as the year-ago figure by 18.2%. Revenues of $536.3 million beat the consensus mark by 1.7% and improved 6% year over year.
IHS Markit’s fourth-quarter fiscal 2020 adjusted earnings per share of 72 cents beat the Zacks Consensus Estimate by 7.5% and increased 11% on a year-over-year basis. Total revenues came in at $1.11 billion, marginally missing the consensus mark and declining 1% from the year-ago quarter on a reported basis.
Automatic Data Processing’s (ADP - Free Report) second-quarter fiscal 2021 adjusted earnings per share of $1.52 beat the consensus mark by 17.8% and were flat year over year. Total revenues of $3.69 billion beat the consensus mark by 3.2% and improved 0.7% year over year.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>