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Have you been eager to see how Eaton Vance Corp. EV performed in second-quarter fiscal 2018 (ended Apr 30) 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:
An Earnings Miss
Eaton Vance came out with adjusted earnings per share of 77 cents, missing the Zacks Consensus Estimate by a penny.
Higher revenues were largely offset by increase in expenses.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for Eaton Vance depicted a bearish stance prior to the earnings release. The Zacks Consensus Estimate for the to-be-reported quarter revised 1.3% downward over the last 30 days.
Eaton Vance doesn’t have a decent earnings surprise history. Before Q2 earnings, the company has an average negative earnings surprise of 0.4%.
Eaton Vance Corporation Price and EPS Surprise
Eaton Vance Corporation Price and EPS Surprise | Eaton Vance Corporation Quote
Revenue Came In Lower Than Expected
Eaton Vance posted total revenues of $414.3 million, which lagged the Zacks Consensus Estimate of $425.3 million. However, it compared favorably with the year-ago number of $374.6 million.
Total expenses were $281.6 million, up 10% year over year
As of Apr 30, 2018, assets under management (AUM) were $440.1 billion, up 14% year-over-year. Also, total net inflows amounted to $4.4 billion in the reported quarter.
During fiscal first half of 2018, Eaton Vance repurchased nearly 2 million shares of its Non-Voting Common Stock for $109.5 million. As of Apr 30, 2018, roughly 4.1 million shares remain available under the current authorization.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) 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 unfavorable, it all depends on what sense the just-released report makes to the analysts.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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