The 10-second takeaway
For the quarter ended March 31 (Q1), Envestnet beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share contracted.
Gross margins increased, operating margins contracted, and net margins shrank.
Envestnet reported revenue of $32.6 million. The six analysts polled by S&P Capital IQ predicted revenue of $32.2 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $29.3 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 $0.07. The seven earnings estimates compiled by S&P Capital IQ forecast $0.06 per share. GAAP EPS of $0.02 for Q1 were 50% lower than the prior-year quarter's $0.04 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 32.0%, 130 basis points better than the prior-year quarter. Operating margin was 5.7%, 310 basis points worse than the prior-year quarter. Net margin was 2.3%, 250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $37.4 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $156.8 million. The average EPS estimate is $0.33.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Envestnet is outperform, with an average price target of $15.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.