The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Envestnet beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Envestnet chalked up revenue of $42.3 million. The five analysts polled by S&P Capital IQ predicted revenue of $41.0 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $32.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The six earnings estimates compiled by S&P Capital IQ forecast $0.08 per share. GAAP EPS of $0.02 for Q3 were 67% lower than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 28.2%, 440 basis points worse than the prior-year quarter. Operating margin was 2.7%, 740 basis points worse than the prior-year quarter. Net margin was 1.3%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $44.3 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $157.2 million. The average EPS estimate is $0.32.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Envestnet is buy, with an average price target of $14.42.
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