Financial Engines, Inc.
) has delivered two straight quarters with positive earnings
surprises, putting together an average beat of 19.6%. This Zacks
Rank #1 (Strong Buy) investment advisor offers an attractive
opportunity for investors given its expected earnings growth of
38.3% in 2013 and projected long-term earnings growth of 32.5%.
Financial Engines will report fourth-quarter results on February
18. The Zacks Consensus Estimate for the quarter is 13 cents on
revenues of $52 million. In the year-ago quarter, it reported 12
On November 6, Financial Engines reported third quarter net income
of 10 cents per share, nearly 25% above the Zacks Consensus
Estimate and 43% higher than the year-ago earnings.
Revenue jumped 36% year over year to $48.4 million, driven by a 50%
surge in professional management revenue.
The company expects to generate 2012 revenues between $185 million
and $187 million. The Zacks Consensus Estimate of $186 million is
at the midpoint of the company guidance.
The Zacks Consensus Estimate for 2013 is currently pegged at 51
cents, suggesting a year-over-year increase of 38.3%.
Shares of Financial Engines are roughly trading at 55.9x on a
price-to-earnings basis (P/E), compared with the peer group average
of 19.9x. On a price-to-book (P/B) basis, shares are trading at
5.3x, compared with the peer group average of 1.6x.
Financial Engines has a trailing 12-month ROE of 7.6%, lower than
the peer group average of 11.1%.
Headquartered in Palo Alto, California, and founded in 1996,
Financial Engines Inc. is a leading investment advisor. It provides
portfolio management, investment advice and retirement income
services to participants in employer-sponsored defined contribution
retirement plans, such as 401(k) plans. Its target retirement plan
market includes plan participants, plan sponsors and plan
providers. Having a market capitalization of $1.35 billion, it
competes with Ameriprise Financial Inc. (
) among others.
Want More of Our Best Recommendations?
Zacks' Executive VP, Steve Reitmeister, knows when key trades are
about to be triggered and which of our experts has the hottest
hand. Then each week he hand-selects the most compelling trades and
serves them up to you in a new program called
FINANCIAL ENGIN (FNGN): Free Stock Analysis
To read this article on Zacks.com click here.