Eaton Vance Earnings: Here’s Why Investors are Selling Shares Now

Eaton Vance Corp. (NYSE:EV) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3%.

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Eaton Vance Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 15.56% to $0.52 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Rose 8.84% to $331.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Eaton Vance Corp. reported adjusted EPS income of $0.52 per share. By that measure, the company met the mean analyst estimate of $0.52. It missed the average revenue estimate of $335.51 million.

Quoting Management: “Strong net flows and favorable market action propelled Eaton Vance to solid growth in our second fiscal quarter,” said Thomas E. Faust Jr., Chairman and Chief Executive Officer. “Higher managed assets across a range of investment categories position the Company for continued progress.”

Key Stats (on next page)…

Revenue increased 4.14% from $318.52 million in the previous quarter. EPS increased 4% from $0.50 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.56 to a profit $0.57. For the current year, the average estimate has moved up from a profit of $2.17 to a profit of $2.18 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)