Clarivate (NYSE:CLVT) Announces Earnings Results

Key Points

• Clarivate narrowly beat earnings expectations, reporting quarterly EPS of $0.19 versus the $0.18 consensus. Revenue was $587.3 million, slightly below estimates and down 5.5% year over year.
• Management expects organic recurring revenue growth and annual contract value to accelerate in the second half, supported by strong renewals, improved product conversion, and expanding AI initiatives.
• Shares fell 16.9% to $2.00 after the results. Analysts maintain a cautious outlook, with the stock carrying a consensus “Reduce” rating and a $2.98 target price.

Clarivate (NYSE:CLVT - Get Free Report) issued its quarterly earnings results 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. Clarivate had a positive return on equity of 8.82% and a negative net margin of 5.61%.The firm had revenue of $587.30 million during the quarter, compared to the consensus estimate of $589.73 million. During the same period last year, the business posted $0.18 EPS. The business'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 Stock Down 16.9%

CLVT traded down $0.41 during midday trading on Wednesday, reaching $2.00. 7,236,724 shares of the company were exchanged, compared to its average volume of 6,802,661. The company has a market cap of $1.28 billion, a price-to-earnings ratio of -9.49 and a beta of 1.38. Clarivate has a one year low of $1.66 and a one year high of $4.77. The company's fifty day moving average price is $2.29 and its 200 day moving average price is $2.44. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.84 and a current ratio of 0.84.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on the company. Barclays upped their target price on Clarivate from $2.40 to $2.50 and gave the company an "underweight" rating in a research report on Tuesday, July 7th. Wall Street Zen upgraded Clarivate from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Clarivate in a research note on Wednesday, June 24th. Four research analysts have rated the stock with a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, the stock has an average rating of "Reduce" and a consensus target price of $2.98.

Institutional Trading of Clarivate

Several institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada lifted its position in shares of Clarivate by 96.2% during the 1st quarter. Royal Bank of Canada now owns 63,630 shares of the company's stock worth $250,000 after buying an additional 31,197 shares in the last quarter. AQR Capital Management LLC grew its stake in Clarivate by 37.0% in the 1st quarter. AQR Capital Management LLC now owns 451,872 shares of the company's stock valued at $1,749,000 after purchasing an additional 122,099 shares during the period. Millennium Management LLC raised its stake in shares of Clarivate by 1,420.4% during the 1st quarter. Millennium Management LLC now owns 1,188,978 shares of the company's stock worth $4,673,000 after purchasing an additional 1,110,774 shares during the period. Goldman Sachs Group Inc. raised its position in Clarivate by 15.5% in the first quarter. Goldman Sachs Group Inc. now owns 616,250 shares of the company's stock worth $2,422,000 after acquiring an additional 82,768 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Clarivate by 13.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,243,683 shares of the company's stock valued at $4,888,000 after acquiring an additional 144,462 shares during the last quarter. Hedge funds and other institutional investors own 85.72% of the company's stock.

About Clarivate

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.

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