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Why Clarivate Stock Cratered Today

By Evan Niu, CFA - Updated Feb 25, 2021 at 4:14PM

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The analytics specialist reports fourth-quarter results as the broader market sells off.

What happened

Shares of Clarivate (CLVT 0.77%) have cratered today, down by 14% as of 3:45 p.m. EST, after the company reported fourth-quarter earnings. The results were mixed relative to expectations, while the broader market is utterly tanking.

So what

Revenue in the fourth quarter came in at $455.6 million, missing the consensus estimate of $472.2 million in sales. On an adjusted basis, revenue was $471 million. That resulted in adjusted earnings per share of $0.22, which was better than the $0.17 per share in adjusted profits that Wall Street analysts were modeling for. The analytics technology company posted adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $200 million. Annualized contract value (ACV) was $906.6 million.

Red stock chart going down.

Image source: Getty Images.

"We are very proud of what we achieved in 2020 during the challenges of the global pandemic," CEO Jerre Stead said in a statement. "Our colleagues quickly overcame these challenges by swiftly adapting to a new work environment that served us well and will provide considerable benefits in the years ahead."

Now what

In terms of guidance, Clarivate reaffirmed its forecast for 2021 and still expects adjusted revenue to be in the range of $1.78 billion to $1.84 billion, compared to the consensus estimate of $1.8 billion. Adjusted EBITDA should be $785 million to $825 million this year, with adjusted earnings per share of $0.73 to $0.79. The company expects to generate adjusted free cash flow (FCF) of $450 million to $500 million. The outlook assumes no further currency fluctuations, acquisitions, or divestitures.

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