A month has gone by since the last earnings report for Envestnet . Shares have added about 2.2% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Envestnet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Envestnet's Q1 Earnings Beat Estimates

Envestnet, Inc. reported impressive first-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate.

ENV’s earnings per share (EPS) were 60 cents, surpassing the consensus estimate by 11.1%. The bottom line increased 30.4% from the year-ago quarter. Total revenues of $325 million beat the consensus estimate by a slight margin and improved 8.7% on a year-over-year basis.

Segmental Revenues

Asset-based recurring revenues of $202.62 million, which represented 62.4% of the top line, increased 14.5% on a year-over-year basis. Professional services and other non-recurring revenues increased 3.7% from a year-ago quarter to $4.9 million. Subscription-based recurring revenues of $117.5 million increased marginally from first-quarter 2023 and contributed 36.1% to the top line.

Profitability Performance

Adjusted EBITDA increased 30% from the year-ago figure to $70.4 million. The adjusted EBITDA margin increased 360 basis points year over year to 21.7% in the quarter under discussion.

Balance Sheet & Cash Flow

ENV’s cash and cash equivalents were $61.23 compared with $91.37 million in fourth-quarter 2023. Debt at the end of first-quarter 2024 was $877.84 million, up from $876.61 million in the preceding quarter. ENV generated $19.44 million in cash from operating activities. CapEx was $19 million.

Q2 Guidance

For second-quarter 2024, the company anticipates revenues between $337 million and $345 million. Adjusted EPS is expected to be 60-65 cents. Adjusted EBITDA is anticipated to be $71-$75 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

Currently, Envestnet has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Envestnet has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Envestnet is part of the Zacks Financial Transaction Services industry. Over the past month, Bread Financial Holdings (BFH Quick QuoteBFH - Free Report) , a stock from the same industry, has gained 3.4%. The company reported its results for the quarter ended March 2024 more than a month ago.

Bread Financial reported revenues of $991 million in the last reported quarter, representing a year-over-year change of -23.1%. EPS of $2.73 for the same period compares with $9.08 a year ago.

Bread Financial is expected to post earnings of $1.45 per share for the current quarter, representing a year-over-year change of +14.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +10.9%.

Bread Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.