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.

Stock price data is provided by IEX Cloud on a 15-minute delayed basis. Chart price data is provided by TradingView on a 15-minute delayed basis.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Trending Articles

High Hopes: Cannabis Stocks, Big Tobacco and M&A
A Closer Look at the CHIPS Act and Its Implications for the U.S. Market
China, Taiwan and the Boycott: The Data Tells the Story
An Easy Way to Profit Off One of Today’s Strongest Sectors
The Future of Smartphones is Still Unfolding: Jeff Kagan
These Stocks are Sending a Signal (Like Amazon in 2008)
It Isn’t a Recession Until This Group of Economists Says So
What You Should Know About Europe's Energy Wars

Market Movers

Sponsored Financial Content