Financial Engines Inc. (FNGN) Gains on Earnings Beat

Jacob Harper  |

The nation’s largest investment advisory company Financial Engines Inc. (FNGN) reported third quarter 2013 earnings after the bell on Nov 5, beating analyst expectations by a wide margin on both revenue and net profit.

Financial Engines reported that assets under their control (primarily retirement accounts) totaled $752 billion, an over 34 percent increase from the prior year.

The company also issued guidance for 2014 that indicated a rosy fiscal year, with expected revenue to fall between $274 million and $279 million, a nearly 20 percent increase over 2013 projections. CEO Jeffrey Nacey Maggioncalda credited shifting demographics to Financial Engine’s continued success, specifically “the generational opportunity represented by the retirement planning needs of the 78 million Baby Boomers in America. Boomers entering into retirement are facing a more complex and daunting situations than did their parents,” which bodes well for professional asset planners.

As a reward to stockholders, Financial Engines reported they would be paying a cash dividend of $0.05 cents a share in January to investors of record as of Dec. 13, 2013.

For their third quarter 2013 earnings report, Financial Engines reported a net gain of $8.1 million, or $0.15 per share, versus the net gain of $4.8 million, or $0.10 per share, from the same period a year ago. Revenue for the quarter was $62.085 million, as compared to $48.6 million from the previous year. Analysts were expecting a net gain of $0.18 per share on revenues of $60.4 million.

Financial Engine popped on the earnings call, rising 12.17 percent to hit $61.56 a share.

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