Have you been eager to see how Eaton Vance Corp. EV performed in third-quarter fiscal 2016 (ended Jul 31) in comparison with the market expectations? Let’s quickly scan through the key facts from this Massachusetts-based investment management firm’s earnings release this morning:
Eaton Vance came out with adjusted earnings per share of 56 cents, in line with the Zacks Consensus Estimate.
Lower expenses were offset by a decline in revenues.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for Eaton Vance depicted a bullish trend prior to the earnings release. The Zacks Consensus Estimate has inched up over the last 7 days.
However, Eaton Vance doesn’t have a decent earnings surprise history. Before Q3 earnings, the company has negative earnings beat in three of the trailing four quarters, with an average negative surprise of 4.48%.
EATON VANCE Price and EPS Surprise
EATON VANCE Price and EPS Surprise | EATON VANCE Quote
Revenue Came In Lower Than Expected
Eaton Vance posted total revenue of $341.2 million, which marginally lagged the Zacks Consensus Estimate of $242.01 million. Also, it compared unfavorably with the year-ago number of $355.5 million.
As of Jul 31, 2016, assets under management (AUM) were $334.4 billion, up 7% year-over-year. Also, total net inflows amounted to $19.0 billion in the reported quarter.
Expenses related to Eaton Vance’s NextShares initiative totaled roughly $2.4 million in the reported quarter, an increase of 17% from the prior-year quarter.
During the first nine months of fiscal 2016, Eaton Vance repurchased nearly 6.1 million shares its Non-Voting Common Stock for $205 million.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for Eaton Vance. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
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EATON VANCE (EV): Free Stock Analysis Report
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