Envestnet Drops on Lagging 2022 Outlook

Envestnet reported fourth-quarter outcomes ahead of price quotes, however, lagging guidance had the stock down on Friday.

Envestnet ( ENV) – Get Report shares dropped on Friday after the digital money management business issued 2022 profits assistance that missed out on expert expectations.

The Chicago business expects 2021 adjusted earnings between $1.95 and $2.08 a share on revenue between $1.1 billion and $1.12 billion.

Analysts are expecting incomes of $2.33 a share on earnings of $1.13 billion.

Envestnet shares at last check were down 15% to $68. The stock was off 2.8% in 2021 through Thursday’s close. It touched a 52-week high of $92.51 in early August.

After the closing bell Thursday, Envestnet reported fourth-quarter adjusted revenues of 69 cents a share as income increased 10% to $263.8 million.

Analysts were expecting revenues of 65 cents per share on earnings of $258.5 million.

“We get in 2022 with a broadened strategic purpose, and a strong investment plan to record the substantial chance prior to us, as we work to make financial wellness a reality for everybody,” President Costs Crager stated in a statement.

Piper Sandler analyst Christopher Donat slashed his rate target to $64 a share from $94. He is concerned that the company’s strategy for $30 million in investments this year will not pertain to fruition if the share rate continues to move.

On The Other Hand, Raymond James expert Patrick O’Shaughnessy decreased his cost target to $91 from $105 while preserving his strong buy ranking.

“This quarter was a reminder of our love-hate relationship with Envestnet: We like its market management within a secular development chance, and we enjoy the optionality the Yodlee service offers, but we dislike the periodic earnings call curveball that has emerged over the years,” O’Shaughnessy said.

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