Needham & Company Reiterates a 'Buy' on Financial Engines (FNGN); Raising Estimates on Solid Q1

Needham & Company reiterates a 'Buy' on Financial Engines (NASDAQ: FNGN) price target of $30.00.

Analyst, Mayank Tandon, said, "FNGN delivered a solid 1Q, posting upside in revenue, margins, and EPS, and raised FY12 revenue guidance mainly to reflect higher market levels. AUM levels rose 31% Y/Y, above expectations, and enrollment rates for its professional management services inched higher to 12.8%. Management announced three record keepers are live with Income+, its income-generating product targeted at employees approaching retirement, and it expects to have five up and running this year. While the impact from Income+ on churn rates will likely take time to unfold, we are encouraged by the initial interest from plan sponsors. To reflect the higher market levels and improvement in enrollment rates, we are upping our estimates slightly."

FY12 EPS estimates raised from $0.47 to $0.49 and revenues were increased from $182.2 mln to $187.0 mln.

For an analyst ratings summary and ratings history on Financial Engines click here. For more ratings news on Financial Engines click here.

Shares of Financial Engines closed at $20.86 yesterday.

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