Upcoming AWS Coverage on R.R. Donnelley & Sons Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 6, 2017 / Active Wall St. announces its post-earnings coverage on Envestnet, Inc. (NYSE: ENV). The Company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on March 23, 2017. The Chicago, Illinois-based Company's quarterly adjusted revenues and adjusted diluted EPS grew 31% and 14% y-o-y, respectively. Results also beat market consensus estimates. Register with us now for your free membership at:

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One of Envestnet's competitors within the Business Services space, R.R. Donnelley & Sons Co. (NYSE: RRD), reported on February 28, 2017, its financial results for Q4 2016. AWS will be initiating a research report on R.R. Donnelley in the coming days.

Today, AWS is promoting its earnings coverage on ENV; touching on RRD. Get our free coverage by signing up to

http://www.activewallst.com/register/

Earnings Reviewed

During the quarter ended on December 31, 2016, Envestnet's GAAP total revenues increased to $155.48 million from $118.44 million recorded at the end of Q4 FY15. Moreover, the Company's adjusted revenue was $155.97 million in Q4 FY16 compared to $118.62 million in Q4 FY15. Adjusted total revenue numbers for Q4 FY16 topped market consensus estimates of $154.6 million.

The financial services Company's GAAP net loss attributable to Envestnet widened to $32.57 million, or $0.75 loss per diluted share, in Q4 FY16, from net loss attributable to Envestnet of $3.91 million, or $0.10 loss per diluted share, in Q4 FY15. Meanwhile, the Company's adjusted net income increased during Q4 FY16 to $14.16 million, or $0.32 per diluted share, from $11.32 million, or $0.28 per diluted share, in the previous year's same quarter. Wall Street had expected the Company to report adjusted net income of $0.31 per share.

In FY16, Envestnet's total revenue came in at $578.16 million compared to $420.92 million in the previous year. Furthermore, the Company's adjusted revenues surged 38% y-o-y to $579.43 million in FY16. The Company reported net loss attributable to Envestnet of $55.57 million, or $1.30 loss per diluted share, in FY16 versus net income attributable to Envestnet $4.44 million, or $0.12 per diluted share, in FY15. However, the Company's adjusted net income for FY16 came in at $43.58 million, or $0.98 per diluted share, compared to $37.70 million, or $0.98 per diluted share, in FY15.

Operational Metrics

Envestnet's Assets under management (AUM), or administration revenue, for the reported quarter stood at $93.53 million, rising from $83.21 million in Q4 FY15. The Company's Subscription and licensing revenue surged to $55.82 million in Q4 FY16 from $30.09 million in Q4 FY15. Furthermore, the Company's Professional services and other revenue was $6.13 million in Q4 FY16, up from $5.13 million in Q4 FY15.

For the reported quarter, the Company's total operating expenses increased 31% to $158.54 million from $120.92 million in the prior year's comparable quarter. The Company reported loss from operations during Q4 FY16 of $3.06 million compared to loss from operations of $2.48 million in Q4 FY15. Meanwhile, the Company's adjusted EBITDA for Q4 FY16 stood at $27.55 million compared to $7.91 million in Q4 FY15.

As on December 31, 2016, the Company's AUM was $105.18 billion compared to $92.56 billion as on December 31, 2015. Assets under Administration totaled $241.68 billion, up from $197.18 billion as on December 31, 2015. Additionally, the Company's Licensing assets increased to $748.13 billion as on December 31, 2016, compared to $561.70 billion as on December 31, 2015.

Cash Flow & Balance Sheet

During full-year FY16, Envestnet's net cash provided by operating activities were $76.82 million, up from $24.43 million in FY15. At the close of books in the reported quarter, Envestnet had $52.59 million in cash compared to $51.72 million at the close of books on December 31, 2015. Furthermore, total debt was $290.9 million at December 31, 2016, compared to $290.8 million at December 31, 2015.

Outlook

In its guidance for the full-year FY17, Envestnet's GAAP total revenue is expected to be in the range of $649 million to $659 million, with adjusted revenue in the range of $650 million to $660 million. Adjusted EBITDA for FY17 is anticipated to be between $120 million to $126 million.

For Q1 FY17, the Company projects GAAP total revenue range of $153.8 million to $156.3 million. The adjusted revenue during the upcoming quarter is forecasted in the range of $154.0 million to $156.5 million. The Company expects adjusted EBITDA during Q1 FY17 to be between $24.0 million and $25.0 million. Furthermore, adjusted EPS for Q1 FY17 is anticipated to be $0.24.

Stock Performance

At the close of trading session on Wednesday, April 05, 2017, Envestnet's stock price climbed 1.23% to end the day at $32.85. A total volume of 418.32 thousand shares were exchanged during the session, which was above the 3-month average volume of 282.98 thousand shares. The Company's share price has gained 17.24% in the past twelve months. The stock currently has a market cap of $1.42 billion.

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SOURCE: Active Wall Street