Cigna earnings beat by $0.04, revenue topped estimates
On Wednesday, Stifel analysts sustained their Buy rating and $7.00 price target for Clarivate Plc (NYSE:CLVT), following the company’s latest earnings report. Clarivate’s recent performance exceeded market expectations, with its shares witnessing a significant 17.3% rise compared to the S&P 500’s modest 0.6% increase.
Stifel’s commentary highlighted the positive reception of the results, raising the question of whether Clarivate is on a path to a successful turnaround or if the quarter’s success was an isolated event. The firm noted that while the quarter’s results are worth acknowledgment, consistent performance across multiple quarters would be necessary for investor confidence to solidify. InvestingPro analysis reveals impressive gross profit margins of 66%, though the company wasn’t profitable in the last twelve months. However, analysts expect profitability to return in 2025.
The analysts at Stifel also mentioned that their financial models for Clarivate now incorporate a slight increase in caution for the remainder of the year. Despite the stronger performance in the first quarter of 2025, the firm’s full-year estimates remain largely unchanged from their previous projections. This decision reflects a balance between the robust first-quarter figures and a more conservative outlook for the upcoming quarters.
Clarivate’s recent earnings report seems to have sparked a renewed interest in the company’s stock, as indicated by the significant uptick in its share price. Stifel’s maintained Buy rating and price target suggest a belief in the potential value of the stock, contingent on the company’s ability to maintain its positive trajectory.
Investors and market watchers will likely keep a close eye on Clarivate’s future earnings reports to assess whether the company can continue to outperform expectations and solidify the confidence required for a sustained increase in stock value. InvestingPro subscribers have access to 13 additional ProTips and comprehensive analysis through the Pro Research Report, offering deeper insights into Clarivate’s potential turnaround story.
In other recent news, Clarivate Plc announced its first quarter results for 2025, surpassing analyst expectations. The company reported adjusted earnings per share of $0.14, exceeding the consensus estimate of $0.12. Revenue for the quarter was $593.7 million, which was above the forecasted $577.45 million, marking a 0.3% organic increase year-over-year. Despite the revenue increase, total revenues saw a decline of 4.4%, attributed to inorganic divestitures and foreign currency impacts. Recurring revenues, including subscription and re-occurring revenues, grew 0.6% organically compared to the previous year. Clarivate reaffirmed its full-year 2025 outlook, projecting adjusted earnings per share between $0.60 and $0.70, aligning closely with the $0.64 consensus. The company also expects organic annual contract value growth of 1.0% to 2.0%. Additionally, Clarivate reported generating $110.3 million in free cash flow during the first quarter and repurchased $50 million of ordinary shares.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.