Eaton Vance Misses Where It Counts
Eaton Vance (NYS: EV) reported earnings on May 23. Here are the numbers you need to know.
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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At the time this article was published 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 ofMotley 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.
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