The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Envestnet beat slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Envestnet reported revenue of $44.4 million. The six analysts polled by S&P Capital IQ anticipated sales of $43.9 million on the same basis. GAAP reported sales were 45% higher than the prior-year quarter's $30.5 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 $0.10. The six earnings estimates compiled by S&P Capital IQ averaged $0.10 per share. GAAP EPS of $0.02 for Q4 were 60% lower than the prior-year quarter's $0.05 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 29.7%, 490 basis points worse than the prior-year quarter. Operating margin was 3.9%, 650 basis points worse than the prior-year quarter. Net margin was 1.8%, 420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $46.2 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $200.1 million. The average EPS estimate is $0.55.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Envestnet is buy, with an average price target of $15.40.
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