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Envestnet (ENV) Stock Rises 2% Following Q4 Earnings Beat
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Envestnet, Inc. (ENV - Free Report) reported mixed fourth-quarter 2022 results with earnings beating the Zacks Consensus Estimate but revenues missing the same.
The stock has gained 2% since the earnings release on Feb 23 in response to the better-than-expected earnings performance.
Adjusted earnings (excluding $1.3 from non-recurring items) came in at 45 cents, beating the Zacks Consensus mark by 4.7%. Adjusted earnings however decreased 10% from the year-ago figure.
Total revenues of $292.9 million missed the consensus estimate by 1.1% and decreased 8.4% on a year-over-year basis.
Envestnet’s shares have declined 17.4% in the past year compared with 6% decline in the industry it belongs to.
Asset-based recurring revenues that constituted 57% of total revenues in the quarter decreased 15% on a year-over-year basis. Subscription-based recurring revenues increased 3% from the prior-year period and constituted 41% of total revenues. Professional services and other non-recurring revenues decreased 7% from the prior-year period.
Adjusted EBITDA decreased 4% from the year-ago reported figure to $53.8 million. The current adjusted EBITDA margin increased to 18.4% from 17.6% reported a quarter ago.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Envestnet had cash and cash equivalents of $162.2 million, down 32.8% from the quarter-ago figure. Long-term debt as of the end of the fourth quarter was $871.8 million, up from $509 million reported a quarter ago.
ENV generated $30.8 million in cash from operating activities. CapEx was $3.1 million.
Guidance
For the first quarter of 2023, the company expects revenues to be in the $299-302 million band. Adjusted EPS is expected to be 45 cents, the same as the current Zacks Consensus Estimate.
For 2023, revenues are expected to be in the $1239.8-1259.8 million band. Adjusted EPS is expected to be in the 1.95-2.05 band for the full year, lower than the current Zacks Consensus Estimate of $2.07
The adjusted EBITDA is expected to be $53-55 million in the first quarter and $242-252 million for the full year. The company expects an adjusted EBITDA margin of 19.5-20.0%.
The following stocks from the Business Service sector reported better-than-expected fourth-quarter results.
Gartner, Inc. (IT - Free Report) , currently having Zacks Rank #3 (Hold), reported better-than-expected fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate. Adjusted earnings (excluding 49 cents from non-recurring items) per share of $3.70 beat the Zacks Consensus Estimate by 44% and increased 23.8% year over year. IT’s revenues of $1.5 billion beat the Zacks Consensus Estimate by 2.6% and improved 15.2% year over year on a reported basis and 20% on a foreign-currency-neutral basis.
Aptiv PLC (APTV - Free Report) , currently carrying Zacks Rank of 3, reported better-than-expected fourth-quarter 2022 results. Adjusted earnings (excluding 41 cents from non-recurring items) of $1.27 per share beat the Zacks Consensus Estimate by 6.7% and increased more than 100% on a year-over-year basis. APTV’s revenues surpassed the Zacks Consensus Estimate by 6% and increased 12.2% year over year.
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Envestnet (ENV) Stock Rises 2% Following Q4 Earnings Beat
Envestnet, Inc. (ENV - Free Report) reported mixed fourth-quarter 2022 results with earnings beating the Zacks Consensus Estimate but revenues missing the same.
The stock has gained 2% since the earnings release on Feb 23 in response to the better-than-expected earnings performance.
Adjusted earnings (excluding $1.3 from non-recurring items) came in at 45 cents, beating the Zacks Consensus mark by 4.7%. Adjusted earnings however decreased 10% from the year-ago figure.
Total revenues of $292.9 million missed the consensus estimate by 1.1% and decreased 8.4% on a year-over-year basis.
Envestnet’s shares have declined 17.4% in the past year compared with 6% decline in the industry it belongs to.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote
Quarter Details
Asset-based recurring revenues that constituted 57% of total revenues in the quarter decreased 15% on a year-over-year basis. Subscription-based recurring revenues increased 3% from the prior-year period and constituted 41% of total revenues. Professional services and other non-recurring revenues decreased 7% from the prior-year period.
Adjusted EBITDA decreased 4% from the year-ago reported figure to $53.8 million. The current adjusted EBITDA margin increased to 18.4% from 17.6% reported a quarter ago.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Envestnet had cash and cash equivalents of $162.2 million, down 32.8% from the quarter-ago figure. Long-term debt as of the end of the fourth quarter was $871.8 million, up from $509 million reported a quarter ago.
ENV generated $30.8 million in cash from operating activities. CapEx was $3.1 million.
Guidance
For the first quarter of 2023, the company expects revenues to be in the $299-302 million band. Adjusted EPS is expected to be 45 cents, the same as the current Zacks Consensus Estimate.
For 2023, revenues are expected to be in the $1239.8-1259.8 million band. Adjusted EPS is expected to be in the 1.95-2.05 band for the full year, lower than the current Zacks Consensus Estimate of $2.07
The adjusted EBITDA is expected to be $53-55 million in the first quarter and $242-252 million for the full year. The company expects an adjusted EBITDA margin of 19.5-20.0%.
Envestnet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The following stocks from the Business Service sector reported better-than-expected fourth-quarter results.
Gartner, Inc. (IT - Free Report) , currently having Zacks Rank #3 (Hold), reported better-than-expected fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate. Adjusted earnings (excluding 49 cents from non-recurring items) per share of $3.70 beat the Zacks Consensus Estimate by 44% and increased 23.8% year over year. IT’s revenues of $1.5 billion beat the Zacks Consensus Estimate by 2.6% and improved 15.2% year over year on a reported basis and 20% on a foreign-currency-neutral basis.
Aptiv PLC (APTV - Free Report) , currently carrying Zacks Rank of 3, reported better-than-expected fourth-quarter 2022 results. Adjusted earnings (excluding 41 cents from non-recurring items) of $1.27 per share beat the Zacks Consensus Estimate by 6.7% and increased more than 100% on a year-over-year basis. APTV’s revenues surpassed the Zacks Consensus Estimate by 6% and increased 12.2% year over year.