Envestnet (ENV) Earnings Match Estimates in Q2, Shares Still
Envestnet, Inc. ENV reported mixed second-quarter 2023 results with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Adjusted earnings (excluding 85 cents from non-recurring items) came in at 46 cents per share, matching the consensus estimate but decreasing 6.1% from the year-ago figure.
Total revenues of $312.43 million missed the consensus estimate by 0.85%. Revenues decreased 2% on a year-over-year basis.
Envestnet failed to impress the investors as the shares barely moved post second-quarter earnings release on Aug 3.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote
Quarter Details
Asset-based recurring revenues, which constituted 59% of total revenues in the quarter, decreased 3% on a year-over-year basis and amounted to $185.76 million. Subscription-based recurring revenues of $114.96 million decreased 3% from the prior-year period and constituted 37% of total revenues. Professional services and other non-recurring revenues increased 34% from the prior-year period to $11.71 million.
Adjusted EBITDA increased 1% from the year-ago reported figure to $57.8 million. The current adjusted EBITDA margin increased to 18.5% from 17.9% reported a year ago.
Balance Sheet & Cash Flow
As of Jun 30, 2023, Envestnet had cash and cash equivalents of $59 million, from $52.7 million reported a quarter ago. Long-term debt, as of the end of the second quarter, was $912.5 million, up from $873 million reported a quarter ago.
ENV generated $72.8 million in cash from operating activities. CapEx was $12.34 million.
Guidance
For the third quarter of 2023, the company expects revenues to be in the $316-$319 million band. The Zacks Consensus Estimate of $318.3 million lies above the midpoint ($317.5 million). Adjusted earnings per share (EPS) is expected to be 52-54 cents. The current consensus estimate matches the upper limit of the guidance.
For 2023, revenues are expected to be in the $1.25-$1.26 billion band, down from the prior expected range of $1.26-$1.27 billion. The consensus mark matches the lower limit of the guided range. Adjusted EPS is expected to be in the $2.09-$2.15 band, down from the previously expected range of $2.11-$2.19. The midpoint ($2.12) lies below the current Zacks Consensus Estimate of $2.13.
The adjusted EBITDA for the third quarter is expected to be $64-$66 million, revised from the prior guidance of $53-$55 million. The adjusted EBITDA is expected to be $255-$260 million for the full year.
Envestnet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Earnings Snapshots
Omnicom (OMC) reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
EquifaxEFX reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s IPG second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
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