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Envestnet (ENV) Stock Down 12.7% Since Q1 Earnings Beat

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Envestnet, Inc.ENV stock has lost 12.7% since its first-quarter 2022 earnings release on May 5. The downfall can be attributed to lower-than-expected revenue performance.

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Zacks Investment Research


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Adjusted earnings per share of 47 cents outpaced the Zacks Consensus Estimate by 4.4% but declined 27% year over year. The reported figure lies above the guided range of 44 to 45 cents.

Revenues of $321.4 million missed the consensus mark by 0.4% but climbed 17% year over year. The reported figure lies above the guided range of $322-$325 million.

Quarterly Numbers in Detail

Adjusted revenues of $321.4 million jumped 17% year over year.

Asset-based recurring revenues of $202.72 million increased 27% year over year, contributing 63% to total revenues. Subscription-based recurring revenues of $114.73 million were up 4% from the prior-year quarter’s level, contributing 36% to total revenues. Professional services and other non-recurring revenues decreased 34% year over year to $3.91 million.

Adjusted EBITDA came in at $55.7 million, down 18% year over year.

Envestnet ended first-quarter 2022 with cash and cash equivalent balance of $359.61 million compared with $429.28 million at the end of the prior quarter. Long-term debt was $850.09 million compared with $848.86 million at the end of the prior quarter.

The company generated around $3.26 million of cash from operating activities. CapEx was $3.89 million.

Envestnet, Inc Price, Consensus and EPS Surprise

Envestnet, Inc Price, Consensus and EPS Surprise
Envestnet, Inc Price, Consensus and EPS Surprise

Envestnet, Inc price-consensus-eps-surprise-chart | Envestnet, Inc Quote

Q2 & 2022 Outlook

For second-quarter 2022, Envestnet expects adjusted earnings per share between 45 and 46 cents. The Zacks Consensus Estimate of 53 cents lies above the guidance.

Total revenues are estimated between $324 million and $326 million. The Zacks Consensus Estimate of $330.55 million lies above the guidance.

The company expects adjusted EBITDA in the band of $55.5-$56.5 million.

For full-year 2022, Envestnet now expects adjusted EPS between $2.17 and $2.23 compared with the prior-guided range of $2.30-$2.40. The Zacks Consensus Estimate of $2.27 lies above the updated guidance.

Total revenues are now anticipated between $1.330 billion and $1.340 billion compared with the prior-guided range of $1.36-$1.385 billion. The Zacks Consensus Estimate of $1.35 billion lies above the updated guidance.

The company now projects adjusted EBITDA of $255-$260 million compared with the prior-guided range of $270-$280 million.

Currently, Envestnet carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Omnicom Group OMC reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Omnicom’s earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by strong margin performance.

Omnicom’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.

Equifax EFX reported better-than-expected first-quarter 2022 results.

Equifax’s adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. The reported figure exceeded the guided range of $2.08-$2.18.

Equifax’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $1.32-$1.34 billion.

Waste Management WM reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Waste Management’s adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year.

Waste Management’s total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.


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