Eaton Vance Corporation (NYSE:EV)
Eaton Vance Corp. (EV), a national company that creates, markets and manages investment funds yesterday reported their fourth quarter 2016 financial results. Eaton Vance Corp reported fourth quarter earnings of $0.57 per share which fell short of analyst expectations of $0.59 per share. Eaton Vance Corp reported fourth quarter revenues of $346.8 million which fell short of analyst expectations of $348.9 million.
Eaton Vance Corp. CEO’s Comments
“The positive organic growth Eaton Vance experienced in the first nine months of our fiscal year continued through the fourth quarter as strong flows into Custom Beta strategies were supported by positive net sales of active strategies. Steady earnings progress over the course of the fiscal year positions the Company for continued improvement in fiscal 2017.” Barrons
EV technical Analysis
EV opened trading yesterday at $40.13 which was down from the previous day’s trading close of $40.57. EV closed trading yesterday at $39.63 and crashed down after market to $37.00, equivalent to a 7% decrease from the closing price. Taking a look at the daily chart we can see that the last time EV traded below these levels we have to go back to the week of November 8th when it traded $35.44. Taking a closer look at the daily chart we can see that before the spike down EV had been in an overall upward trend dating back to November 2nd when it traded at $34.60. EV has a float of 104.04 million shares and traded 1.54 times the normal daily trading volume on Tuesday. For trading purposes, I would like to see EV open trading on Wednesday below $37.85 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
Eaton Vance Corp., incorporated on January 29, 1981, is managing investment funds and providing investment management and advisory services to institutions and high-net-worth individuals. The Company develops and sustains management expertise across a range of investment disciplines and offers investment products and services through multiple distribution channels. Through its subsidiaries Eaton Vance Management (EVM) and Atlanta Capital Management, LLC (Atlanta Capital) and other affiliates, the Company manages active equity, income and alternative strategies across a range of investment styles and asset classes, including U.S. and global equities, floating-rate bank loans, municipal bonds, global income, high-yield and investment grade bonds. Through its subsidiary Parametric Portfolio Associates LLC (Parametric), the Company manages a range of engineered alpha strategies, including systematic equity, systematic alternatives and managed options strategies, and provides portfolio implementation services, including tax-managed core and specialty index strategies, futures- and options-based portfolio overlay, and centralized portfolio management of multi-manager portfolios.
The Company also oversees the management of investment funds sub-advised by third-party managers, including global, regional and sector equity, commodity and asset allocation strategies. The Company offers a range of products and services to fund shareholders, retail managed account investors, institutional investors and high-net-worth clients. The Company distributes funds and separately managed accounts through financial intermediaries in the advisory channel. The Company reaches this market place with distribution partners including national and regional broker-dealers, independent broker-dealers, independent advisory firms, banks and insurance companies. The Company supports these distribution partners with a team of approximately 135 sales professionals covering U.S. and international markets.