Envestnet, Inc. ( stock has lost 4.9% since its second-quarter 2022 earnings release on Aug 4. The downfall can be attributed to a weak third-quarter and full year guidance. ENV Quick Quote ENV - Free Report)
For third-quarter 2022, Envestnet expects adjusted earnings per share between 40 cents and 42 cents. The guided range lies below the current Zacks Consensus Estimate of 50 cents.
For 2022, Envestnet now expects adjusted EPS between $1.84 and $1.89 compared with the prior-guided range of $2.17-$2.23. The updated projection lies below the current Zacks Consensus Estimate of $2.03. Total revenues are now anticipated between $1.255 billion and $1.260 billion compared with the prior-guided range of $1.330-$1.340 billion.
Adjusted earnings (excluding 91 cents from non-recurring items) per share of 49 cents outpaced the Zacks Consensus Estimate by 6.5% but declined 27% year over year. The reported figure lies above the guided range of 45-46 cents.
Revenues of $318.9 million missed the consensus mark by 1.9% but climbed 10.4% year over year. The reported figure lies above the guided range of $324-$326 million.
Quarterly Numbers in Detail
Adjusted revenues of $318.9 million jumped 10% year over year.
Asset-based recurring revenues of $192 million increased 12.9% year over year, contributing 60.2% to total revenues. Subscription-based recurring revenues of $118 million were up 4.8% from the prior-year quarter’s level, contributing 37% to total revenues. Professional services and other non-recurring revenues increased 42.2% year over year to $8.8 million.
Adjusted EBITDA came in at $57.1 million, down 20% year over year.
Envestnet ended second-quarter 2022 with a cash and cash equivalent balance of $338 million compared with $359.61 million at the end of the prior quarter. Long-term debt was $508.3 million compared with $850.09 million at the end of the prior quarter.
ENV generated $49.4 million of cash from operating activities. CapEx was $5.24 million.
For the third quarter of 2022, total revenues are estimated between $301.5 million and $303.5 million. Envestnet expects adjusted EBITDA in the band of $51-$53 million.
For 2022, ENV now projects adjusted EBITDA of $223-$227 million compared with the prior-guided range of $255-$260 million.
Currently, Envestnet carries a Zacks Rank #5 (Strong Sell).
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