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Envestnet Beats on Both Top and Bottom Lines

By Seth Jayson – Updated Apr 10, 2017 at 1:14PM

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Just the facts, Fool.

Envestnet (NYSE: ENV) reported earnings on May 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Envestnet beat slightly on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share didn't change.

Gross margins expanded, operating margins dropped, net margins dropped.

Revenue details
Envestnet booked revenue of $46.6 million. The six analysts polled by S&P Capital IQ anticipated sales of $46.1 million on the same basis. GAAP reported sales were 43% higher than the prior-year quarter's $32.6 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.12. The six earnings estimates compiled by S&P Capital IQ averaged $0.11 per share. Non-GAAP EPS of $0.12 for Q1 were 71% higher than the prior-year quarter's $0.07 per share. GAAP EPS of $0.02 were the same as the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 64.0%, much better than the prior-year quarter. Operating margin was 1.3%, 440 basis points worse than the prior-year quarter. Net margin was 1.2%, 110 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $51.0 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $227.8 million. The average EPS estimate is $0.57.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Envestnet is buy, with an average price target of $18.00.

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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. The Motley Fool has no position in any of the stocks mentioned. 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.

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