The 10-second takeaway
For the quarter ended April 30 (Q2), Eaton Vance beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped.
Margins shrank across the board.
Eaton Vance logged revenue of $304.8 million. The nine analysts polled by S&P Capital IQ expected to see a top line of $300.1 million on the same basis. GAAP reported sales were 6.5% lower than the prior-year quarter's $325.8 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 $0.45. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.48 per share. GAAP EPS of $0.44 for Q2 were 12% lower than the prior-year quarter's $0.50 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 46.1%, 600 basis points worse than the prior-year quarter. Operating margin was 32.4%, 350 basis points worse than the prior-year quarter. Net margin was 17.3%, 190 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $304.5 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $1.21 billion. The average EPS estimate is $1.89.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 70 members out of 91 rating the stock outperform, and 21 members rating it underperform. Among 22 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Eaton Vance a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Eaton Vance is hold, with an average price target of $28.05.
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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.