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

Clarivate (NYSE:CLVT) announced its quarterly earnings data on Wednesday. The company reported $0.19 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.18 by $0.01, FiscalAI reports. Clarivate had a positive return on equity of 9.00% and a negative net margin of 13.84%.The company had revenue of $587.30 million for the quarter, compared to the consensus estimate of $589.73 million. During the same period in the previous year, the business earned $0.18 EPS. The firm’s revenue was down 5.5% compared to the same quarter last year.

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 Price Performance

CLVT stock traded down $0.04 during mid-day trading on Friday, reaching $1.98. 2,447,732 shares of the company traded hands, compared to its average volume of 6,788,033. The company has a fifty day moving average price of $2.28 and a 200-day moving average price of $2.42. Clarivate has a 52-week low of $1.66 and a 52-week high of $4.55. The company has a market capitalization of $1.26 billion, a P/E ratio of -3.80 and a beta of 1.38. The company has a debt-to-equity ratio of 0.89, a current ratio of 0.84 and a quick ratio of 0.84.

Analysts Set New Price Targets

CLVT has been the subject of several analyst reports. Citigroup lowered their price objective on Clarivate from $2.80 to $2.50 and set a “neutral” rating for the company in a research note on Thursday. Weiss Ratings reissued a “sell (e+)” rating on shares of Clarivate in a report on Wednesday, June 24th. Stifel Nicolaus decreased their price objective on Clarivate from $6.00 to $5.00 and set a “buy” rating for the company in a report on Thursday. The Goldman Sachs Group decreased their price objective on Clarivate from $2.90 to $2.60 and set a “neutral” rating for the company in a report on Thursday. Finally, Barclays dropped their price objective on shares of Clarivate from $2.50 to $2.00 and set an “underweight” rating on the stock in a report on Thursday. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, Clarivate currently has a consensus rating of “Reduce” and a consensus target price of $3.02.

Hedge Funds Weigh In On Clarivate

Several hedge funds have recently bought and sold shares of the company. Virtu Financial LLC boosted its holdings in Clarivate by 204.3% in the 4th quarter. Virtu Financial LLC now owns 49,960 shares of the company’s stock valued at $167,000 after purchasing an additional 33,544 shares during the period. Invesco Ltd. raised its position in shares of 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 buying an additional 368,531 shares in the last quarter. Vident Advisory LLC boosted its stake in 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 buying an additional 5,980 shares during the period. SkyView Investment Advisors LLC boosted its stake in Clarivate by 1.4% during the fourth quarter. SkyView Investment Advisors LLC now owns 413,728 shares of the company’s stock valued at $1,382,000 after buying an additional 5,830 shares during the period. Finally, Empowered Funds LLC grew its position in Clarivate by 587.2% during the fourth 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 in the last quarter. Hedge funds and other institutional investors own 85.72% of the company’s stock.

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.