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Envestnet, Inc. ENV reported better-than-expected first-quarter 2021 results.
Adjusted earnings per share of 64 cents outpaced the Zacks Consensus Estimate by 4.9% and improved 12.3% year over year. The reported figure lies above the guidance of 61 cents.
Revenues of $275.1 million surpassed the consensus mark by 0.6% and climbed 12% year over year.The reported figure lies above the guided range of $270-$273 million.
Over the past year, shares of Envestnet have gained 5.7% compared with 19.2% rise of the industry it belongs to.
Let’s check out the numbers in detail.
Quarterly Numbers in Detail
Adjusted revenues of $275.2 million jumped 11% year over year.
Asset-based recurring revenues of $159.38 million increased 18% year over year, contributing 58% of total revenues. Subscription-based recurring revenues of $109.83 million were up 5% from the prior-year quarter’s levels, contributing 40% of total revenues. Professional services and other non-recurring revenues decreased 18% year over year to $5.9 million.
Adjusted EBITDA came in at $68.3 million, up 25% year over year.
Envestnet ended first-quarter 2021 with cash and cash equivalent balance of $371.98 million compared with $384.57 million at the end of the prior quarter. Long-term debt was $845.19 million compared with $756.5 million at the end of the prior quarter.
The company generated around $49.8 million of cash from operating activities. CapEx was $7.1 million.
Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote
Q2 & 2021 Outlook
For second-quarter 2021, Envestnet expects adjusted earnings to lie between 53-55 cents per share. The Zacks Consensus Estimate of 53 cents is in line with the lower end of the guidance.
Total revenues are estimated between $281 million and $284 million. The Zacks Consensus Estimate of $282.5 million lies within the guidance.
The company expects adjusted EBITDA in the band of $60-$62 million.
For 2021, Envestnet has raised its guidance. Adjusted EPS is now expected in the range of $2.03-$2.10 compared with the prior guidance of $1.95-$2.08. The Zacks Consensus Estimate of $2.14 lies above the updated guidance.
Total revenues are now anticipated between $1.138 billion and $1.148 billion compared with the prior guidance of $1.105-$1.120 billion. The Zacks Consensus Estimate of $1.14 billion lies within the updated guidance.
The company now projects adjusted EBITDA of $230-$236 million compared with the prior guidance of $225-$235 million.
Currently, Envestnet carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax’s EFX first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and improved on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus estimate by 7.9% and improved 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s RHI first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s OMC first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and marginally increased year over year.
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