Clarivate (NYSE:CLVT) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Clarivate (NYSE:CLVT) released its quarterly earnings results on Tuesday. The company reported $0.21 earnings per share for the quarter, beating analysts’ consensus estimates of $0.18 by $0.03, FiscalAI reports. Clarivate had a negative net margin of 17.02% and a positive return on equity of 9.73%. The business had revenue of $481.60 million for the quarter, compared to the consensus estimate of $566.77 million. During the same quarter last year, the firm earned $0.18 EPS. Clarivate’s revenue for the quarter was down 22.7% on a year-over-year basis.

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

• Recurring growth improved: Organic ACV growth rose to 1.8% and recurring organic revenue growth reached 1.3%, while IP ACV returned to positive growth for the first time in more than three years.
• Clarivate reported strong customer traction for its AI products, including more than 100 institutional wins for Web of Science Research Intelligence and a 151-customer pipeline for the upcoming IPOne platform.
• The completed Life Sciences & Healthcare divestiture leaves Clarivate focused on Academia & Government and IP, with a 93% recurring organic revenue mix; management expects the portfolio simplification and cost controls to support margin expansion.
• The company repurchased approximately $293 million of debt year to date, plans to use divestiture proceeds for additional discounted buybacks, and expects to reduce total debt by about $875 million in 2026.
• Continuing-operations revenue is expected to decline to $1.965 billion-$1.985 billion for 2026, primarily because of strategic disposals, while free cash flow guidance was reduced to $320 million-$340 million after transaction costs and the loss of seasonal Life Sciences & Healthcare cash flow.

Clarivate Stock Up 7.8%

CLVT traded up $0.17 during trading on Thursday, reaching $2.29. The company had a trading volume of 4,630,183 shares, compared to its average volume of 6,017,524. The company has a debt-to-equity ratio of 0.93, a current ratio of 0.85 and a quick ratio of 0.85. Clarivate has a 12 month low of $1.42 and a 12 month high of $3.87. The business’s fifty day moving average price is $1.81 and its 200 day moving average price is $2.21. The company has a market cap of $1.46 billion, a P/E ratio of -3.71 and a beta of 1.38.

Analyst Ratings Changes

Several research analysts have commented on CLVT shares. Wall Street Zen downgraded Clarivate from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. William Blair cut Clarivate to a “market perform” rating in a research report on Thursday, October 15th. Jefferies Financial Group restated a “hold” rating and issued a $2.25 price objective on shares of Clarivate in a research note on Thursday. Barclays dropped their target price on shares of Clarivate from $2.50 to $2.00 and set an “underweight” rating on the stock in a research report on Thursday, July 30th. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Clarivate in a research note on Monday, September 21st. One equities research analyst has rated the stock with a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $2.65.

Insider Activity

In other news, Director Kenneth Cornick bought 250,000 shares of the company’s stock in a transaction that occurred on Friday, August 7th. The shares were acquired at an average price of $1.85 per share, with a total value of $462,500.00. Following the transaction, the director owned 2,000,000 shares in the company, valued at $3,700,000. This represents a 14.29% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 22.88% of the stock is owned by corporate insiders.

Clarivate Company Profile

Clarivate Plc (NYSE:CLVT) provides analytics, data, and workflow solutions to organizations in academia, government, research, life sciences, and intellectual property. Its offerings are designed to help customers evaluate research, manage information, accelerate innovation, and support strategic decision-making.

The company’s products include Web of Science research databases and citation analytics, InCites research evaluation tools, Derwent innovation and patent intelligence services, and Cortellis life sciences and drug-development information.