Clarivate (NYSE:CLVT) Posts Earnings Results, Beats Expectations By $0.01 EPS

Clarivate (NYSE:CLVT) issued its quarterly earnings data on Wednesday. The company reported $0.19 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.18 by $0.01, FiscalAI reports. The business had revenue of $587.30 million for the quarter, compared to analysts’ expectations of $589.73 million. Clarivate had a positive return on equity of 8.82% and a negative net margin of 5.61%.The firm’s quarterly revenue was down 5.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.18 EPS.

Here are the key takeaways from Clarivate’s conference call:

• Management expects organic recurring growth and ACV to accelerate in the second half, citing strong renewal rates, improving product conversion, and 75% of the A&G business already secured for the year.
• Clarivate reported strong momentum in its AI initiatives, including MCP-enabled products and proprietary-data integrations, which management expects to support new revenue streams, customer retention, and new-logo growth.
• Management is optimistic about an IP segment turnaround, supported by new leadership, products such as IPOne and RiskMark, and a return to flat recurring revenue in the second quarter.
• Transactional revenue faced quarterly headwinds, particularly in life sciences, and is expected to remain slightly down year over year for the full year, although management anticipates improvement in the second half and expects the life sciences divestiture to close before year-end.

Clarivate Trading Down 16.9%

Shares of NYSE:CLVT traded down $0.41 on Wednesday, hitting $2.00. The company had a trading volume of 7,236,724 shares, compared to its average volume of 6,802,661. The firm’s 50-day simple moving average is $2.29 and its two-hundred day simple moving average is $2.44. Clarivate has a 1 year low of $1.66 and a 1 year high of $4.77. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 0.89. The firm has a market capitalization of $1.28 billion, a price-to-earnings ratio of -9.49 and a beta of 1.38.

Institutional Investors Weigh In On Clarivate

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CLVT. Virtu Financial LLC grew its position in shares of Clarivate by 204.3% in the 4th quarter. Virtu Financial LLC now owns 49,960 shares of the company’s stock worth $167,000 after buying an additional 33,544 shares during the period. Invesco Ltd. grew its holdings in Clarivate by 38.4% in the fourth quarter. Invesco Ltd. now owns 1,327,520 shares of the company’s stock worth $4,434,000 after purchasing an additional 368,531 shares during the period. Vident Advisory LLC increased its stake in shares of Clarivate by 3.3% during the fourth quarter. Vident Advisory LLC now owns 185,821 shares of the company’s stock valued at $621,000 after purchasing an additional 5,980 shares in the last quarter. SkyView Investment Advisors LLC boosted its position in shares of Clarivate by 1.4% in the 4th quarter. SkyView Investment Advisors LLC now owns 413,728 shares of the company’s stock worth $1,382,000 after purchasing an additional 5,830 shares in the last quarter. Finally, Empowered Funds LLC grew its stake in shares of Clarivate by 587.2% in the 4th quarter. Empowered Funds LLC now owns 388,670 shares of the company’s stock worth $1,298,000 after buying an additional 332,110 shares during the last quarter. 85.72% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

CLVT has been the topic of a number of recent analyst reports. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Clarivate in a research note on Wednesday, June 24th. Wall Street Zen raised shares of Clarivate from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Finally, Barclays raised their price objective on shares of Clarivate from $2.40 to $2.50 and gave the company an “underweight” rating in a research report on Tuesday, July 7th. Four research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Clarivate currently has an average rating of “Reduce” and an average target price of $2.98.

Clarivate Company Profile

Clarivate plc is a global information and analytics company that provides insights and workflow solutions to accelerate the pace of innovation. The company delivers proprietary data, analytics, and expertise to support research and development in the life sciences, intellectual property management, academic institutions, government agencies, and corporations. Its core offerings include citation and patent databases, drug pipeline analytics, trademark research tools, regulatory compliance solutions, and market intelligence platforms.

Originally part of Thomson Reuters’ Intellectual Property & Science division, Clarivate was established as an independent entity in 2016 following a spin-off transaction.