Analyst Note| Rajiv Bhatia, CFA |
Narrow-moat-rated Envestnet reported a solid quarter and a raised full-year outlook with financial results generally topping expectations. Revenue for the quarter of $289 million beat the FactSet consensus estimate of $284 million and the firm’s guidance of $281-$284 million. Likewise, adjusted EBITDA of $71.1 million and adjusted earnings of $0.67 beat the consensus of $60.9 million and $0.54, respectively. Given the strong quarter and market appreciation acting as a tailwind to asset-based revenue, we expect to raise our fair value estimate on Envestnet’s shares to $72 from $65.