A Preview Of Envestnet's Earnings

Envestnet ENV unveils its next round of earnings this Thursday, February 25. Get prepared with Benzinga's ultimate preview for Envestnet's Q4 earnings.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street analysts see Envestnet reporting earnings of $0.65 per share on revenue of $258.66 million. In the same quarter last year, Envestnet announced EPS of $0.69 on revenue of $239.94 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 5.8% decrease in the company's earnings. Sales would be up 7.8% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 7.1%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Envestnet is scheduled to hold the call at 17:00:00 ET and can be accessed here.