Clarivate PLC (NYSE:CLVT) closed Tuesday trading 7.17% higher, with a share price of $7.24 and a market valuation of $4.90 billion. The company's stock has risen 16.16% from its 52-week low of $6.07, while still trading at a discount to its 52-week high of $11.99. Over the last five days and month, the stock performance increased by 13.56%. The Wall Street consensus price target is $8.50, which would require a further 14.82% increase from the current price.
The company traded 3.15 million shares on Tuesday, with an average volume of 5.03 million shares over the last ten days. The short interest cover period stands at 10.81 days with 58.27 million shares sold short.
Despite a net loss per share of $0.01 and a net loss attributable to ordinary shares of $6.6 million in Q3, Clarivate reported a revenue increase of 1.8% to $647.2 million for the same period this year. Organic revenues grew by 1.7%, driven by various revenue streams including new customer acquisitions and the launch of AI-powered tools within Life Sciences & Healthcare.
The adjusted net income rose by 6.2% to $152.6 million, with an adjusted income per diluted share of $0.21, and the adjusted EBITDA increased by 3.6% to $281.4 million, resulting in a 43.5% adjusted EBITDA margin.
As of September 30, 2023, Clarivate had cash and cash equivalents worth $398.9 million, with a total outstanding debt of $4,920.5 million.
However, the company's free cash flow decreased to $101.7 million due to timing-related capital requirements. For 2023, Clarivate expects revenues between $2.60 billion and $2.67 billion, up to 2% organic revenue growth, an adjusted EBITDA between $1.09 billion and $1.14 billion, an adjusted diluted EPS of $0.77 to $0.83, and a free cash flow between $450 million and $500 million.
Analysts expect $681.6 million in revenue for the quarter ending Dec 2023, compared to sales of $643.53 million and $675.3 million for the same quarters a year ago. The expected earnings per share for the current quarter are $0.18.
Despite the projected year-over-year growth rate being -1.50%, and the current quarter sales forecasted to drop by -1.90%, the company has shown a positive earnings growth rate of 47.79% over the past five years with an annual growth rate of -8.24%.
InvestingPro Insights
In light of the recent financial performance of Clarivate PLC (NYSE:CLVT), InvestingPro provides some key insights to further understand the company's position. With a market capitalization of $4.71 billion, the company has shown a notable revenue growth of 10.94% in the last twelve months as of Q2 2023, accumulating to $2.61 billion. However, it's worth noting that the revenue growth has been slowing down recently, a point highlighted in our InvestingPro Tips.
The company's P/E Ratio stands at -1.10, which, along with other metrics, indicates the company has not been profitable over the last twelve months. Yet, analysts predict the company will be profitable this year, aligning with the positive earnings growth rate reported in the article.
Despite the company's high EBIT valuation multiple, it has an impressive gross profit margin of 64.94%. This, coupled with the expectation of net income growth this year, could potentially lead to better financial performance in the future.
Lastly, it's important to note that the InvestingPro product offers numerous additional tips and data points for those interested in a deeper analysis of Clarivate or any other company. These insights are designed to provide a more comprehensive understanding of a company's financial health and market position.
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