Clarivate (NYSE:CLVT) Releases Quarterly Earnings Results

Clarivate (NYSE:CLVT) posted its quarterly earnings data on Wednesday. The company reported $0.19 earnings per share 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 analyst estimates of $589.73 million. Clarivate had a positive return on equity of 8.82% and a negative net margin of 5.61%.The company’s revenue was down 5.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.18 earnings per share.

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 Stock Down 17.4%

Shares of CLVT traded down $0.42 during midday trading on Wednesday, reaching $1.98. The stock had a trading volume of 7,446,523 shares, compared to its average volume of 6,804,558. The company has a market cap of $1.27 billion, a price-to-earnings ratio of -9.36 and a beta of 1.38. The company’s fifty 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 debt-to-equity ratio of 0.89, a current ratio of 0.84 and a quick ratio of 0.84.

Hedge Funds Weigh In On Clarivate

Several large investors have recently bought and sold shares of the business. Cetera Investment Advisers raised its stake in Clarivate by 11.2% in the second quarter. Cetera Investment Advisers now owns 26,034 shares of the company’s stock valued at $112,000 after buying an additional 2,617 shares in the last quarter. California State Teachers Retirement System raised its position in shares of Clarivate by 0.9% during the 2nd quarter. California State Teachers Retirement System now owns 303,147 shares of the company’s stock worth $1,304,000 after acquiring an additional 2,788 shares in the last quarter. Envestnet Asset Management Inc. lifted its stake in Clarivate by 3.9% during the third quarter. Envestnet Asset Management Inc. now owns 77,275 shares of the company’s stock worth $296,000 after purchasing an additional 2,884 shares during the last quarter. Hsbc Holdings PLC lifted its stake in Clarivate by 4.3% during the second quarter. Hsbc Holdings PLC now owns 116,648 shares of the company’s stock worth $500,000 after purchasing an additional 4,792 shares during the last quarter. Finally, Advisory Services Network LLC boosted its holdings in Clarivate by 6.7% in the third quarter. Advisory Services Network LLC now owns 85,200 shares of the company’s stock valued at $326,000 after purchasing an additional 5,371 shares in the last quarter. Hedge funds and other institutional investors own 85.72% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research firms recently commented on CLVT. Barclays boosted their target price on Clarivate from $2.40 to $2.50 and gave the stock an “underweight” rating in a research note on Tuesday, July 7th. Wall Street Zen raised Clarivate from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Clarivate in a research note on Wednesday, June 24th. Four equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Reduce” and a consensus 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.