Black Knight Inc (NYSE: BKI) in the fourth quarter of FY 17 has reported the adjusted earnings per share of 37 cents, while adjusted revenue growth of 2 percent to $268.4 million in the fourth quarter of FY 17, missing the analysts’ estimates for revenue of $270.1 million. Hence, the stock lost over 2.8% on Feb 8th, 2018 (As of 11:00AM EST; Source: Google finance).
Further, in the fourth quarter of FY 17, Black Knight has reported 25 percent growth in the Adjusted Net Earnings to $56.6 million, compared to $45.2 million in the prior-year quarter. The adjusted EBITDA for the fourth quarter of 2017 grew by 13% to $131.9 million from $116.7 million in the prior-year quarter. The company has posted the adjusted EBITDA Margin of 49.1% compared to 44.4% in the prior-year quarter.
Additionally, during the fourth quarter of FY17, Black Knight has repurchased 2.0 million shares of its common stock for $90.1 million at a price of $45.065 per share. As of December 31st, 2017, BKI had approximately 6.8 million shares remaining under its share repurchase authorization. In addition, at the end of December 2017, BKI had cash and cash equivalents of $16.2 million and debt of $1,434.1 million. As of December 31st, 2017, BKI had an available capacity of $445.0 million on its revolving credit facility.
For FY 18, BKI expects earnings per share to be in the range of $1.73 to $1.81, and the revenue is expected to be in the range of $1.11 billion to $1.13 billion.
On the other hand, on January 1st, 2018, BKI has realigned the composition of the two reportable segments, in which certain enterprise business intelligence offerings in the Data and Analytics segment were moved to the Software Solutions segment.
Meanwhile, BKI has recently has signed an agreement with M&T Bank, which is one of the largest banks in the U.S., to implement Black Knight’s Enterprise Business Intelligence (EBI) solution. EBI will provide broader and deeper insight into the bank’s mortgage portfolio, will help improve efficiency across M&T Bank’s origination and servicing operations and generate new revenue opportunities. Further, M&T Bank is currently a BKI client and is further expanding its use of Black Knight solutions.